Affin Bank Berhad has issued an RM500 million second series Additional Tier 1 Capital Securities under the AT1CS Programme in anticipation of the redemption of the existing AT1CS of RM500 million in nominal value on the first callable date on 31 July 2023.
The group said the issuance had attracted overwhelming interest from investors where ABB had received bids in excess of RM500,000,000, representing an oversubscription of 1.31 times.
The tenure of Affin’s AT1CS issued is perpetual for a non-callable 5 years. The coupon rate for the AT1CS is 5.70% per annum fixed throughout the tenure.
The banking group will use the proceeds for the general banking working capital requirements and business purposes of the Bank. AT1CS issued from the AT1CS Programme will qualify as Basel III-compliant Additional Tier 1 Capital of ABB in accordance with the Capital Adequacy Framework (Capital Components) issued on 2 February 2018 by Bank Negara Malaysia.
Affin Hwang Investment Bank Berhad, Maybank Investment Bank Berhad and CIMB Investment Bank Berhad are the Joint Lead Managers for the second issuance of RM500,000,000 AT1CS.
