LONDON, Sept 10 – Mongolia’s Khan Bank said on Wednesday it established a $300 million global medium-term note programme, allowing it to issue foreign currency bonds to international investors.
Credit ratings agency Moody’s assigned Baa3 and Ba1 ratings respectively to the local currency senior and subordinated notes in the proposed programme, while assigning Ba2 ratings to the foreign currency senior and subordinated notes. All had stable outlooks.
Khan Bank said it intended the programme would be listed on the Singapore stock exchange for one year.
“The programme will not only further diversify our potential funding sources, but will also help the bank to raise longer-term fans, which in turn can finance the growing demands of our clients,” chief executive Peter Morrow said in a statement. “It will also enable us to better manage the bank’s liquidity and cashflow.
Moody’s said in a statement [ID:nWLA9288] that further supplements to capital might be warranted if the bank’s risk-weighted assets continued to grow much faster than internal capital formation.
But it warned the bank’s liquidity profile would become less favourable as it increasingly relied on confidence-sensitive market funds such as the programme.
SOURCE: Yahoo Malaysia