AFFIN Bank Bhd has made its debut in the US dollar bond market with a issuance of US$300 million (RM1.42 billion) in senior unsecured notes under its US$2 billion Euro medium term note (EMTN) programme, amid strong global investor demand.
The five-year notes, carrying a fixed coupon of 5.112% per annum, were priced at 105 basis points above the 5-year US Treasury yield and are rated A3 with a stable outlook by Moody’s Investors Service.
The issue drew an orderbook exceeding US$1 billion from 67 investor accounts, representing a 3.5 times oversubscription, the group said in a statement.
Distribution was skewed heavily towards Asian investors (87%), followed by Europe, Middle East and Africa (11%), and offshore US (2%).
By investor type, asset and fund managers/insurance firms took 72%, banks 24%, and private banks/others 4%.
Affin Group president and group CEO Datuk Wan Razly Abdullah said the issuance marks a “significant progression” in the group’s capital markets strategy and demonstrates investor confidence in its fundamentals and long-term plans.
“This debut in the USD bond market underscores our credibility and is aligned with the AFFIN Axelerate 2028 (AX28) strategic plan to unlock value through unrivalled customer service, digital leadership and responsible banking,” he said.
Proceeds from the issuance will be used for working capital, general banking, and other corporate purposes.
Affin Hwang Investment Bank Bhd, along with HSBC, MUFG Securities Asia Ltd (Singapore branch), and Standard Chartered Bank, served as joint lead managers and bookrunners, while DBS Bank Ltd was co-manager.
The notes will be listed on the Singapore Exchange (SGX). — TMR
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