OCBC Raises 300 Million Ringgit Selling Credit-Linked Securities

Oversea-Chinese Banking Corp. raised about 300 million ringgit ($97.7 million) selling five credit-linked notes to individual investors in Malaysia since November, according to an e-mailed statement.

The Singapore-based lender said in an April 9 statement it would sell its sixth credit-linked note in the currency next month, after becoming the first bank in the Southeast Asian nation to sell the securities to individuals last year.

The five-year notes will be linked to the credit of Australia & New Zealand Banking Group Ltd. (ANZ), Standard Chartered Plc and Bank of China Ltd., OCBC said in the statement. The notes will pay interest of 4.5 percent to 5.5 percent a year, according to the statement.

Eleanor Danker, a Kuala Lumpur-based spokeswoman for OCBC, declined to immediately comment on the issuance when asked by e- mail how much the bank plans to raise via the sale.

Credit-linked notes are debt securities issued and underwritten by banks linked to the bonds or credit-default swaps of a separate entity. The investors are exposed to losses if either the bank that sold the note or the entity that the note is tied to defaults.

To contact the reporter on this story: Benjamin Garvey in Hong Kong at bgarvey8@bloomberg.net.

To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net.

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