Hong Leong offers to buy back Lehman notes from some investors
By Tan Soo See/Nicholas Fang, Channel NewsAsia | Posted: 22 October 2008 2305 hrs

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SINGAPORE: Hong Leong Finance is proposing to buy back Lehman Minibond Programme notes from some of its customers.

In a statement released late Wednesday, Hong Leong Finance says it is offering to buy over the notes from its elderly and less well-educated customers.

There are two conditions attached.

The main account holder must be 62 years or older at the time of investment, with not higher than a primary school education.

The joint account holder, if any, must also not have higher than a primary school education.

Hong Leong will pay the total original investment, minus all interest paid to date.

Hong Leong says it will continue to review and deal with all remaining cases in a fair and equitable manner, and as expeditiously as possible.

Meanwhile, Maybank says it has contacted more than 50 per cent of vulnerable investors who have bought Lehman Minibonds, in a bid to help such customers.

The Monetary Authority of Singapore has urged financial institutions to give priority to vulnerable customers. They include those over 55 years old, less educated and first-time investors.

Financial institutions were also urged to take full responsibility in cases where the product was clearly inappropriate, given the customer's profile and circumstances.

Maybank says in a statement that it has already identified investors who belong to the vulnerable group and that their cases have been fast-tracked for review.

It has also conducted or scheduled interviews with 70 per cent of those investors who had written or contacted the bank.

The bank's management says it has reached a decision on deserving cases that warrant full compensation and is working out details before communicating the decision to the affected investors.

- CNA/ir