Malaysia's Hong Leong Bank plans up to US$757m rights issue: sources

Posted by Trading Advisor on 6:15 PM with 1 comment
[KUALA LUMPUR] Hong Leong Bank Bhd is planning to raise up to 3 billion ringgit (S$1.06 billion) in rights issues this year to strengthen its capital, two sources with direct knowledge of the matter told Reuters.

klse stocksThe bank, Malaysia's fifth largest by assets, is the last of its peers to bolster its capital to meet more stringent central bank requirements under the global Basel III framework, the sources said.

Analysts had earlier said Hong Leong Bank's core capital, measured by its common equity tier 1 ratio, was one of the lowest among local banks at 8.1 per cent and that the bank was seeking to increase that level to at least 10 per cent.
A Hong Leong spokeswoman did not respond to repeated requests for comment. The sources declined to be identified as the matter remained confidential
Categories: ,