Maybank is looking to raise RM2.64 billion to further strengthen the bank's capital base.
This is meant to meet more stringent capital requirement under the Basel III framework.
The bank intends to place out 300 million shares or 3.68% of its capital base at an indicative placement price of RM8.80 per share.
Maybank says a possible upsize of the placement will depend 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 also succeeded in pricing its US$800mil 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 were expected 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 an Asian Bank outside Japan and also marked the largest ever US dollar bond issuance by a Malaysian financial institution.
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