KUALA LUMPUR (June 4): Affin Bank Bhd (KL:AFFIN) has debuted in the US dollar bond market with the issuance of US$300 million (RM1.27 billion) in senior unsecured notes.
This was Affin's maiden issuance under its US$2 billion Euro Medium Term Note (EMTN) programme, the group said in a statement on Wednesday (June 4).
“The issuance attracted strong global demand, with the final order book exceeding US$1 billion across 67 investor accounts, representing a 3.5 times oversubscription,” Affin said.
“Geographically, distributions comprised 87% to Asia, 11% to Europe, the Middle East and Africa, and 2% to offshore US investors. By investor type, the notes were allocated 72% to asset, fund managers/insurance, 24% to banks, and 4% to private banks/others,” it added.
The notes were priced at 105 basis points over the five-year US Treasury yield, offering a fixed rate of 5.112% per annum, the bank noted. They will be listed on the Singapore Exchange Securities Trading Ltd.
Affin president and group chief executive officer Datuk Wan Razly Abdullah dubbed the bank’s US dollar bond market debut as a significant progression in its capital markets strategy.
“The overwhelming response underscores investor confidence in our fundamentals and validates the credibility we have established,” he said.
According to Affin, the EMTN programme offers the bank a flexible and efficient platform to raise foreign currency funding to support the needs of its diversified client base.
“This issuance marks a strategic milestone in the group’s capital diversification strategy, positioning Affin among leading Malaysian banks in the global capital market and reinforcing investor confidence in its vision to become the most creative and innovative financial company in Malaysia,” it added.
Affin’s EMTN programme is rated A3 with a stable outlook by Moody’s Investor Services Inc.
Affin Hwang Investment Bank Bhd, Hongkong and Shanghai Banking Corporation Ltd (HSBC), MUFG Securities Asia Ltd, and Standard Chartered Bank are joint lead managers and bookrunners for the issuance, with DBS Bank Ltd acting as co-manager.
Shares in Affin ended nine sen or 3.46% lower at RM2.51 on Wednesday, valuing the lender at RM6.36 billion.