Affin Bank president and group chief executive officer Datuk Wan Razly Abdullah
KUALA LUMPUR: Affin Bank Bhd has announced the latest issuance of RM500 million Additional Tier 1 Capital Securities (AT1CS) this year.
It said the issuance, rated A3 by RAM Rating Services Bh with a distribution rate of 5.70 per cent per annum, is perpetual on a non-callable five years with the first callable date on June 23, 2028.
President and group chief executive officer Datuk Wan Razly Abdullah said the move aimed to fortify the bank’s capital structure and augment its financial flexibility.
"We are pleased with the overwhelming interest in our AT1CS issuance, which indicates the market’s faith in Affin Group’s enduring strategy and solid financial standing. Notably, this is the first AT1CS launch this year in Malaysia,” he said.
He said this reflected the trust and optimism investors have in Affin Group’s growth blueprint and robustness, particularly under the A25 Plan, which revolves around three tenets -- unrivalled customer service, digital leadership and responsible banking with impact.
He added that the capital amassed would be deployed to catalyse the the bank’s expansion and perpetually create value for our stakeholders.
The capital generated through the issuance would be employed to bolster banking activities, address working capital requirements and cater to Affin Group’s business necessities.
Significantly, the AT1CS will be recognised as Basel III-compliant Additional Tier 1 Capital for Affin Bank, in line with Bank Negara Malaysia’s Capital Adequacy Framework (Capital Components).
The issuance is poised to amplify the bank’s Total Capital Ratio, augmenting it by over 130 basis points. - Bernama
