Maybank may be able to raise RM2.64bil via shares placement
PETALING JAYA: Malayan Banking Bhd (Maybank) could potentially raise about RM2.64bil in a bid to further strengthen the bank's capital base and facilitate to meet more stringent capital requirement under the Basel III framework.
It intends to place out 300 million shares or 3.68% of its capital base at an indicative placement price of RM8.80 per share.
In filings with Bursa Malaysia, the country's largest bank said the assumption of the issue price was based on a 3% discount to the weighted average market price of Maybank shares for the five market days up to Oct 4 of RM9.0757.
Maybank says a possible upsize of the placement will depend on investors’ demand.
“The final number of new Maybank shares to be issued and the issue price of the shares will only be determined and announced after the completion of the book-building process, which will commence on Friday,” it said.
It said there is also possible upsize of the placement depending on investors' demand.
“The board is of the view that the proposed private placement is the most expeditious means of strengthening the company's capital base,” it said.
Maybank said the proceeds from the share sale, net of expenses relating to the exercise, would be utilised for working capital and general banking purpose.
The bank ended the day nine sen, or 1%, lower at RM8.99 yesterday.
In line with the world's adoption to Basel III, banks across the world would have to have a common format for disclosing the size and quality of their capital safety buffers from 2013 to help reassure investors they are stable.
It would also force banks to hold more capital and liquidity from 2013 onwards and will require banks to hold at least 7% of core Tier 1 capital in the form of retained earnings or pure equity.
Recently, Maybank had also succeeded in pricing its US$800mil (RM2.4bil) Regulation S Tier 2 Capital Subordinated Notes under its US$5bil multicurrency medium term note programme. The proceeds from the notes were also used for working capital, general banking and other corporate purposes, the bank had said earlier.
The subordinated notes wereexpected to qualify as Lower Tier 2 capital as per the Bank Negara's guidelines and be eligible for Basel III transitional treatment.
It is the largest regulation US dollar lower tier 2 capital issuance by anAsian Bank outside Japan and also marked the largest ever US dollar bond issuance by a Malaysian financial institution.
The said transaction was priced at 5-year US Treasury + 260 bps or a yield of 3.254% and will pay a coupon of 3.25% per annum, to be paid semi-annually in arrears.
The subordinated notes had a tenure of 10 years from the issue date on a 10 non-callable 5 basis, maturing on Sept 20, 2022.
No comments:
Post a Comment