AmResearch is maintaining a Buy call on Public Bank at RM7.40 with a fair value at RM10.20 after the latter announced plans to issue up to RM5 billion in debt notes.
Under the proposal, Public Bank planned to issue non-cumulative perpetual capital securities of up to RM5 billion in nominal value, which are stapled to subordinated notes to be issued by a unit. Funds raised will be used for working capital, general banking and other corporate purposes.
AmResearch said Public Bank’s intention to undertake an issuance of non-innovative Tier 1 capital securities was widely expected.
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