KUALA LUMPUR (Sept 28): RHB Bank has issued subordinated notes of RM500 million in nominal value under its multi-currency medium-term note (MCMTN) programme.

It said the subordinated notes, rated AA2 by RAM Rating Services Bhd, are issued for a tenure of 10 non-callable five years with a fixed coupon rate of 4.4% per annum, payable semi-annually in arrears throughout the entire tenure.

“Proceeds raised from the subordinated notes will be utilised for RHB Bank’s general working capital and other corporate purposes,” it said in a filing with Bursa Malaysia.

It said the notes would qualify as Tier 2 capital of RHB Bank subject to compliance with the requirements as specified in the Capital Adequacy Framework for Banks (Capital Components) issued by Bank Negara Malaysia on Dec 9, 2020.

Additionally, it said RHB Bank had fully redeemed its existing RM750 million in nominal value of subordinated notes issued under stock code UN170146 on the first call date, Dec 27, 2022.