KUALA LUMPUR: Affin Islamic Bank Bhd has completed the placement of RM500 million nominal value of AT1 Sukuk Wakalah and RM500 million nominal value of Tier 2 Sukuk Murabahah, under the bank’s existing Islamic medium-term notes (MTN) programme of RM5.0 billion (sukuk programme) to selected investors.
The new series AT1 Sukuk Wakalah was issued today while the Tier 2 Sukuk Murabahah is targeted to be issued on Friday (Oct 13).
Affin Bank Bhd president and group chief executive officer Datuk Wan Razly Abdullah said the bank is pleased with the overwhelming response to their second AT1 capital and first Tier 2 issuance within the group for the year.
"This demonstrates the group’s strong financial standing in the banking industry as the group believes the issuance of the AT1 Sukuk Wakalah and Tier 2 Sukuk Murabahah will enhance the group’s financial position and resilience while also expanding the bank’s capital base.
"The funds raised will be deployed to accelerate our growth and enhance our shareholders’ value,” he said in a statement.
Wan Razly added that the AT1 Sukuk Wakalah and Tier 2 Sukuk Murabahah were oversubscribed by more than 2.1 times and 3.7 times respectively by institutional and high-net-worth individuals.
"We received RM2.9 billion demand for our RM1 billion capital issuance (Tier 1 and Tier 2). This proves that despite the volatility witnessed in the current credit markets, achieving this landmark success is a testament to the group’s strong standing with investors,” he said.
The AT1 Sukuk Wakalah was priced at 5.10 per cent per annum and the Tier 2 Sukuk Murabahah was priced at 4.66 per cent per annum.
"This has allowed the bank to save on its financing cost compared to its previous AT1 Sukuk Wakalah and Tier 2 Sukuk Murabahah issuance at 5.65 per cent per annum and 5.05 per cent per annum respectively,” it said. - Bernama
