KUALA LUMPUR (Oct 10): Affin Islamic Bank Bhd, a wholly-owned subsidiary of Affin Bank Bhd, said the issuance of both its RM500 million AT1 Sukuk Wakalah and RM500 million Tier 2 Sukuk Murabahah has been well-received by institutional investors and high net worth individuals, with more than 2.1 times and 3.7 times oversubscription respectively.

Affin Bank Bhd president and group chief executive officer Datuk Wan Razly Abdullah said the group had received RM2.9 billion demand for the RM1 billion capital issuance.

"Despite the volatility witnessed in the current credit market, achieving this landmark success is a testament to the group’s strong standing with investors,” he said in a statement on Tuesday.

This completes Affin Islamic's placement of the AT1 sukuk wakalah and Tier 2 sukuk murabahah, which are under its existing Islamic medium-term notes programme of RM5 billion.

The proceeds raised from the issuances will be used for working capital requirements and business purposes of Affin Islamic.

The AT1 sukuk wakalah was issued on Tuesday, while the Tier 2 sukuk murabahah is targeted to be issued on Oct 13.

The AT1 sukuk wakalah was priced at 5.1% per year, while the Tier 2 sukuk murabahah was priced at 4.66% per year.

Wan Razly said the capital issuance 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 thus enhance our shareholders value."

Affin Hwang Investment Bank Bhd was the lead manager of the two issuances.

At the noon market break on Tuesday, Affin Bank shares closed up three sen or 1.45% at RM2.10, with a market capitalisation of RM4.93 billion.