Malaysia's CIMB Bank sells RM 1 billion stapled securities, plans $150 million of bonds

By Angela McDaniels

Tacoma, Wash., Dec. 26 - CIMB Bank Bhd. issued RM 1 billion of securities on Dec. 26 under its RM 4 billion non-innovative tier 1 stapled securities issuance program, according to a news release from indirect parent company Bumiputra-Commerce Holdings Bhd.

The securities were issued via a private placement and were rated AA- by Malaysian Rating Corp. Bhd.

Under the program, the bank can issue non-cumulative perpetual capital securities and, through subsidiary Commerce Returns Bhd., subordinated notes.

Proceeds will be used for CIMB Bank's working capital and general banking purposes.

The program was approved by the Malaysian Securities Commission on Dec. 17 and by Bank Negara Malaysia on Nov. 28.

Upcoming issue

In addition, CIMB Bank Ltd. plans to issue up to $150 million of senior unsecured guaranteed bonds and five-year warrants in a private placement.

The bank is seeking approval of the issuance from Bank Negara Malaysia and Labuan Offshore Financial Services Authority.

CIMB Bank is a retail and commercial bank. Its parent company, CIMB Group Snd. Bhd., is a subsidiary of Kuala Lumpur-based bank group Bumiputra-Commerce Holdings.

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