- Narrative Type
| - Narrative Text
|
| Additional Text | ADJOURNED NOTEHOLDER MEETINGS RELATING TO THE CONSENT SOLICITATION EXERCISE BY THE ISSUER IN CONNECTION WITH THE NOTES ISSUED PURSUANT TO THE U.S.$15,000,000,000 MULTICURRENCY MEDIUM TERM NOTE PROGRAMME |
| Narrative version | SIGNIFICANCE OF THE NOTEHOLDERS PARTICIPATION IN THE CONSENT SOLICITATION TO FACILITATE ACTIVE TRANSITION FROM USD LIBOR TO SOFR PRIOR TO CESSATION OF USD LIBOR ON 30 JUNE 2023
The publication of representative 3-month USD LIBOR will permanently cease after 30 June 2023. The Issuer wishes to emphasise that active participation of the Noteholders in the Consent Solicitation (as defined in the Notice of Adjourned Noteholder Meetings) is necessary to ensure the requisite quorum required for the approval of the relevant Extraordinary Resolution at each Adjourned Noteholder Meeting (as defined below) and the implementation of the Noteholder Proposals (as defined in the consent solicitation memorandum issued by the Issuer on 27 March 2023) to allow active transition from USD LIBOR to SOFR.
If the Noteholder Proposals with respect to the relevant Series are not implemented:
1) The existing '3-month USD LIBOR' interest basis of the relevant Notes will not be replaced by the 'SOFR Compounded Index' interest basis; and
2) Upon the cessation of representative USD LIBOR after publication on 30 June 2023, the interest basis of the relevant Notes will be automatically transitioned to unrepresentative 3-month synthetic USD LIBOR to be published by ICE Benchmark Administration Limited and made available from 1 July 2023 until 30 September 2024, subject to the relevant notices under the Benchmarks Regulation being published by the Financial Conduct Authority of the United Kingdom ( FCA ) on 1 July 2023, according to a recent announcement dated 3 April 2023 by the FCA.
SOFR is the alternative benchmark recommended by the Alternative Reference Rates Committee ( ARRC ) in replacement of USD LIBOR and the widely used benchmark in the bond market presently. In contrast, the 3-month synthetic USD LIBOR is a temporary bridging measure. Therefore, the active transition from the existing 3-month USD LIBOR interest basis to SOFR remains the best way for Noteholders to retain control and certainty over the Notes and for the Notes to be able to price based on the ARRC s proposed alternative pricing methodology to USD LIBOR, i.e. SOFR. This is in line with recommendations from the ARRC which has highlighted the importance of active transitioning. Therefore, the Issuer wishes to draw the Noteholders attention to the Consent Solicitation Memorandum and the Notice of Adjourned Noteholder Meetings for further details and to take the necessary steps to participate in the Consent Solicitation |
| Web Site Address | To view the Notice of Adjourned Noteholder Meetings, the Consent Solicitation Memorandum and the Noteholder Information (as defined in the Notice of Adjourned Noteholder Meetings):
https://deals.is.kroll.com/maybank |
| Party Contact Narrative | Questions and requests for assistance in connection with the Consent Solicitations may be directed to contact details set out below.
THE ISSUER
Malayan Banking Berhad
Corporate Finance, Group Corporate Treasury,
Level 3, Menara Maybank,
100 Jalan Tun Perak
50050 Kuala Lumpur, Malaysia
Email: GCT-CF@maybank.com
TABULATION AND INFORMATION AGENT
Kroll Issuer Services Limited
In Hong Kong
3/F, Three Pacific Place
1 Queen's Road East
Admiralty
Hong Kong
In London
The Shard
32 London Bridge Street
London SE1 9SG
United Kingdom
Attention: Mu-yen Lo / Owen Morris
Tel: +852 2281 0114 / +44 20 7704 0880
Email: maybank@is.kroll.com
Consent Website: https://deals.is.kroll.com/maybank |