Labuan, Thursday, 24 November 2005 – The primary listing of USD200 million Non-cumulative Guaranteed Preference Shares
issued by SBB Capital Corporation, a Labuan incorporated offshore company and wholly-owned subsidiary of Southern Bank Berhad today marked the debut of an Innovative Hybrid
Tier 1 capital raising by a Malaysian bank in the international capital markets. The Non-cumulative Guaranteed Preference Shares is issued as an Innovative Tier
1 Capital under the Bank Negara Malaysia Guidelines for Innovative Tier 1 Capital Instruments.
The Non-cumulative Guaranteed Preference Shares, which bears an interest rate of 6.62% per annum, are guaranteed by SBB and has a rating of Ba2 from Moody’s Investors
Services Limited and BB+ from Fitch Rating.
The listing sponsor for SBBC was Avenue Securities Sdn Bhd. UBS AG Labuan Branch was the lead manager and bookrunner for the issuance of the Non-cumulative Guaranteed Preference
Shares, which was oversubscribed by 4 times.
“This is certainly a milestone for LFX. It provides an avenue for expanding the capacity for domestic and international financial institutions and enables them
to reach a wider market. We are very encouraged by the response this listing received and hope more financial institutions will take advantage of similar opportunities available
to them at the Labuan International Financial Centre and LFX,” said Chairman of LFX Board Encik Yusli Mohamed Yusoff, who is also the Chief Executive Officer of Bursa
Malaysia Berhad.
The Non-cumulative Guaranteed Preference Shares is the 7th instrument listed on LFX for year 2005. With the latest listing, LFX’s range of financial instruments now comprises
.six (6) Syariah-compliant certificates (Sukuk), six (6) open-ended funds and sixteen (21) conventional debt securities and exchangeable bonds. This brings the total market
capitalisation of LFX to USD12.49 billion.
About Labuan International Financial Exchange (LFX):
LFX is an international offshore financial exchange based in Labuan, the international offshore financial centre of Malaysia. LFX is web-based at www.lfx.com.my and utilise international networking and electronic communication systems to facilitate exchange listing and trading facilities. LFX facilitates the listing of both conventional and Islamic multi-currency financial instruments and allows the issuer the flexibility to structure instruments for listing that best suit their funding needs. LFX is a company limited by shares and is wholly-owned by Bursa Malaysia Berhad. |
