Bond Factsheet
HLBKMK 4.450% Perpetual Corp (MYR)
Hong Leong Bank Bhd
Indicative
Full Lot
Bid Price 100.083
Change in Bid Price 0.011
Bid Yield (%) 4.294 %
Change in Bid Yield 0.019
Ask Price 100.658
Change in Ask Price 0.011
Ask Yield (%) 3.255 %
Change in Ask Yield 0.014
Indicative price as of 02 Oct 2026, 4:25pm
Ask Yield to Worst
Bid Yield to Worst
Ask Yield to Maturity
Bid Yield to Maturity
Bond Issuer
Hong Leong Bank Bhd
Guarantor
-
Announcement Date
25 Apr 2022
Issue Date
29 Apr 2022
Maturity Date
Perpetual
Years to Maturity / Next Call
Perpetual / 0.565
Modified Duration
0.542 @ 02 Oct 2026
Issue / Reoffer Price
100.000
Issue / Reoffer Yield
4.450
Coupon Type
Variable
Annual Coupon Rate
4.450
Coupon Frequency
Semi Annually
Seniority
Junior Subordinated
Capital Structure
Additional Tier 1
Reference Rate
Reset Date: 29 Apr 2027 and every 5 years thereafter
Reset Rate: Malaysia Govt Bonds 5 Year Yield + Credit Spread (0.722%)
ISIN
MYBUZ2201443
CUSIP
BW1052180
Bond Currency
MYR
Total Issue Size
900,000,000
Min. Investment Quantity (Nominal)
MYR 250,000
Incremental Quantity (Nominal)
MYR 1,000
Bond Type
High Yield Corporate
Bond Sector
Financials
Bond Sub Sector
Banks
Issuer Credit Rating (S&P/ Fitch/ RAM)
***/ BBB+/ AAA
Bond Credit Rating (S&P/ Fitch/ RAM)
***/ N.R/ A1
Shariah Compliant
No
Exchange Listed
No
Loss Absorption
Following the occurrence of the following trigger events (each a “Non-Viability Event”), whichever is earlier:
(i) BNM, jointly with the Malaysia Deposit Insurance Corporation (“PIDM”), so long as the Issuer is a Member Institution (as defined in the Malaysia Deposit Insurance Corporation Act 2011), or BNM, if the Issuer is no longer a Member Institution (“Relevant Malaysian Authority”) have notified the Issuer or HLFG and its subsidiaries (“HLFG Group”), as the case may be, in writing that they are of the view that the principal write off of the Capital Securities, together with the conversion or write off of any other Tier 2 instruments and Tier 1 instruments which, pursuant to their terms or by operation of law, are capable of being converted into equity, or written off at that time, is necessary, without which the Issuer or the HLFG Group would cease to be viable; or
(ii) The Relevant Malaysian Authority publicly announces that a decision has been made by BNM, PIDM or any other federal or state government in Malaysia, to provide a capital injection or equivalent support to the Issuer, without which the Issuer or the HLFG Group (as the case may be) would cease to be viable,
the Relevant Malaysian Authority shall have the option to require the entire principal outstanding or such portion thereof and (if any) all other amount owing under the Capital Securities be written off and if the Relevant Malaysian Authority elect to exercise such option, subject to and as of the date of the occurrence of the Non-Viability Event, each of the holders of the Capital Securities hereby irrevocably waives its right to receive repayment of the principal amount of the Capital Securities and also irrevocably waives its right to any Periodic Distribution (including Periodic Distribution accrued but unpaid up to the date of the occurrence of a Non-Viability Event).
Such write off of Capital Securities shall not constitute an event of default or Enforcement Event, nor would it trigger a cross-default under any other outstanding Capital Securities issued under the AT1 Programme.
A Non-Viability Event shall be deemed to have occurred on the day on which the Issuer or HLFG Group (as the case may be) receives the notification from the Relevant Malaysian Authority.
A Capital Trigger Event occurs when the Common Equity Tier 1 Ratio of the Issuer (at the consolidated or entity level) or the Common Equity Tier 1 Ratio of HLFG (at the consolidated level) falls below 5.125% as of the relevant quarterly reporting date where the quarterly unaudited consolidated financial results of the Issuer or HLFG (as the case may be) are published, announced and made publicly available (“Capital Trigger Event Date”).
“Common Equity Tier 1 Ratio” means the common equity tier 1 capital ratio as determined by the New CA Framework.
Upon the occurrence of a Capital Trigger Event, the entire principal outstanding or such portion thereof and (if any), all other amount owing under the Capital Securities shall be written off such that the effect of such write off, together with the write off or conversion of other relevant Tier 1 instruments which pursuant to their terms or by operation of law, are capable of being converted into equity, or written off at that time, will return the Common Equity Tier 1 Ratio of the (i) Issuer (at the consolidated and entity level) and (ii) HLFG (at the consolidated level), to be at least 5.75%. Such write off of the Capital Securities, together with the write off or conversion of other relevant Tier 1 instruments, if any, shall be done on a pro-rata basis.
Deferral Interest Payment
The payment of Periodic Distribution under the Capital Securities shall be at the Issuer’s sole and absolute discretion and is subject to:
(i) Such payment not resulting in a breach of the capital requirements applicable to the Issuer under the relevant BNM’s capital guidelines;
(ii) The Issuer is solvent at the time of payment of the Periodic Distribution and the payment of the Periodic Distribution will not result in the Issuer becoming, or likely to become insolvent; and
(iii) Such payment being made from Distributable Reserves (as defined below) only.
Notwithstanding that the Issuer is able to meet all the conditions (i), (ii) and (iii) above, the Issuer may also, at its sole and absolute discretion:
(A) pay a part of the Periodic Distribution and cancel the other part of the Periodic Distribution which would otherwise have been payable on such Distribution Payment Date; or
(B) cancel the whole Periodic Distribution which would otherwise have been payable on such Distribution Payment Date,
If the Issuer does not make a Periodic Distribution on the relevant Distribution Payment Date (or if the Issuer elects to make a payment of a portion, but not all, of such Periodic Distribution), such non-payment or part-payment shall serve as evidence of the Issuer's exercise of its discretion to cancel such Periodic Distribution (or the portion of such Periodic Distribution not paid), and accordingly such Periodic Distribution (or the portion thereof not paid) shall not be due and/or accrued, and shall not be payable.
Circumstances for Cumulative Distribution
Notwithstanding the above, if (i) the Capital Securities or any tranche thereof no longer qualify as Additional Tier 1 capital of the Issuer, (in whole and not in part) for the purposes of BNM’s minimum capital adequacy requirements under any applicable regulations, and such disqualification has been confirmed by BNM in writing, and (ii) the Issuer is not in breach of BNM’s minimum capital adequacy ratio requirements applicable to the Issuer, any Periodic Distribution payable after the date of notification from BNM of such disqualification (“Disqualification Date”) may be deferred, in whole or in part, at the Issuer’s sole and absolute discretion but shall not be cancelled in accordance with the provisions of this paragraph. Any portion of the Periodic Distribution payable on a Distribution Payment Date occurring after the Disqualification Date, but deferred at the Issuer’s sole and absolute discretion shall start to become cumulative and compound at the Distribution Rate from (and including) the said Distribution Payment Date (“Deferred Distribution Date”) up to the date of actual payment of such deferred Periodic Distribution. In such circumstances, the deferred Periodic Distribution, together with accrued amounts will become due and payable no later than ten (10) years from the Deferred Distribution Date, or upon redemption of the Capital Securities, whichever is earlier.
If the Issuer does not make a Periodic Distribution on the relevant Distribution Payment Date (or if the Issuer elects to make a payment of a portion, but not all, of such Periodic Distribution), such non-payment or part-payment shall serve as evidence of the Issuer’s exercise of its discretion to defer such Periodic Distribution (or the portion of such Periodic Distribution not paid).
Issuer Call
“Redemption Amount” means in the case of an Optional Redemption, a Tax Redemption or a Regulatory Redemption, an amount equal to 100% of the nominal value of the Capital Securities together with accrued but unpaid and uncancelled Periodic Distribution, if any (as defined in the paragraph entitled “Other terms and conditions – Profit / coupon or equivalent rate (%)”) and subject to the provisions contained in the paragraph entitled “Other terms and conditions - Limitation on Payment of Distribution”, up to (and excluding) the date on which the Capital Securities are redeemed.
“Redemption Conditions” means:
(i) the Issuer is solvent at the time of redemption of a tranche of Capital Securities or part thereof and immediately thereafter;
(ii) the Issuer:
(a) shall replace that tranche of Capital Securities or part thereof to be redeemed with capital of the same or better quality and the replacement of such capital is done at conditions which are sustainable for the income capacity of the Issuer; or
(b) demonstrates to BNM that its capital position is and can be sustained well above the minimum capital adequacy and capital buffer requirements as imposed by BNM after the redemption; and
(iii) the Issuer has obtained the written approval of BNM prior to redemption of that tranche of Capital Securities or part thereof.
“Optional Redemption Date” means a date to be determined prior to issuance. In the case of a tranche of Capital Securities under the AT1 Programme, a date falling no earlier than the fifth (5th) anniversary (29 April 2027) of the relevant issue date, and any Distribution Payment Date (as defined in the paragraph entitled “Other terms and conditions – Profit / coupon payment frequency and basis”) thereafter.
Additional Note
In the event that the Issuer has not made a full payment of any Periodic Distribution on a Distribution Payment Date, then (i) the Issuer shall not pay any dividends to its shareholders or make any payment or distribution on any security or instruments ranking pari passu with or junior to the Capital Securities and which terms do not require the Issuer to make such payment or distribution (“Dividend Stopper”); and (ii) the Issuer shall not redeem, purchase, reduce or otherwise acquire any of its ordinary shares, preference shares, securities or instruments ranking pari passu with or junior to the Capital Securities, or any securities of any of its subsidiary benefiting from a guarantee from the Issuer, ranking, as to the right of redemption of principal, or in the case of any such guarantee, as to the payment of sums under such guarantee, pari passu with or junior to the Capital Securities (“Capital Stopper”).
The Dividend Stopper and the Capital Stopper shall continue to apply, as the case may be, until either (i), (ii) or (iii) below is met:
(i) the Issuer has paid full Periodic Distribution scheduled for two (2) consecutive semi-annual Distribution Payment Dates or four (4) consecutive quarterly Distribution Payment Dates (as the case may be) after the application of the Dividend Stopper and the Capital Stopper;
(ii) the Issuer has irrevocably set aside in a separately designated trust account of the Issuer for payment to the holders of the Capital Securities, an amount sufficient to provide for the full Periodic Distribution scheduled for two (2) consecutive semi-annual Distribution Payment Dates or four (4) consecutive quarterly Distribution Payment Dates (as the case may be) after the application of the Dividend Stopper and the Capital Stopper and if upon determination of the amount of each of such Periodic Distribution there is a shortfall in the amounts set aside in such separately designated trust account with reference to the amounts so determined, an amount at least equal to such shortfall shall be paid or irrevocably set aside in the same manner; or
(iii) an Optional Distribution (as defined below) has, at the option of the Issuer and subject to BNM’s approval, been paid to all holders of the Capital Securities equal to, (without duplication of amounts previously paid to the holders of the Capital Securities) amounts outstanding (if any) on the Capital Securities which were scheduled to be paid in the twelve (12) months before the date of payment of the Optional Distribution.
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