Malaysia's CIMB issues new shares to Bumi-Commerce

KUALA LUMPUR, July 10 (Reuters) - Malaysia's No.2 lender CIMB Bank has issued 667 million new shares to its holding company Bumiputra-Commerce BUCM.KL to pay off debt, said Bumiputra-Commerce on Friday.

The new CIMB shares were issued to settle the coupon payments and principal on the 667 million ringgit ($186.6 million) irredeemable convertible unsecured loan stocks (ICULS) which are due and payable to Bumiputra-Commerce, it said in a filing with the stock exchange.

CIMB Group Sdn Bhd, a wholly owned subsidiary of Bumiputra-Commerce, has been nominated to be the holder of the new CIMB Bank shares, said the company.

"The ICULS are previously recognised as Tier 2 capital of CIMB Bank and the new CIMB Bank shares issued pursuant to the settlement are recognised as Tier 1 capital of CIMB Bank, thus strengthening CIMB Banks Tier 1 or core capital ratio," it added.

($1=3.575 ringgit)

(Reporting by Soo Ai Peng; Editing by Niluksi Koswanage)