KUCHING: AFFIN Group has raised USD300 million (RM1.27 billion) in its first-ever US dollar bond issuance under its USD2 billion (RM8.48 billion) Euro Medium Term Note (EMTN) Programme.
In a statement, it said the Senior Unsecured Notes were priced at 105 basis points over the five-year US Treasury yield, offering a fixed annual rate of 5.112 per cent.
The Notes are rated A3 (Stable) by Moody’s Investor Services Inc, affirming AFFIN’s credit profile and outlook.
The issuance follows the establishment of the EMTN Programme and AFFIN’s recent inaugural international credit rating of A3 (Stable) from Moody’s.
AFFIN said the issuance attracted strong global demand, with the final orderbook exceeding USD1 billion (RM4.24 billion) across 67 investor accounts, representing a 3.5 times oversubscription.
By region, 87 per cent of the Notes were distributed to Asia, 11 per cent to Europe, the Middle East and Africa (EMEA), and 2 per cent to offshore US investors.
By investor type, 72 per cent went to asset and fund managers or insurance companies, 24 per cent to banks, and 4 per cent to private banks or others.
Commenting on the matter, AFFIN Group President and Group Chief Executive Officer, Datuk Wan Razly Abdullah, said AFFIN’s debut in the USD bond market marked a significant progression in its capital markets strategy, drawing strong global investor demand.
“The overwhelming response underscores investor confidence in our fundamentals and validates the credibility we have established.
“Guided by the AFFIN Axelerate 2028 (AX28) Plan, the Group remains committed to unlocking long-term value through Unrivalled Customer Service, Digital Leadership, and Responsible Banking With Impact,” he said.
AFFIN added that the EMTN Programme offers a flexible and efficient platform to raise foreign currency funding, supporting the needs of its diversified client base.
The issuance is also described as a strategic milestone in the Group’s capital diversification strategy.
The Notes will be listed on the Singapore Exchange Securities Trading Limited.
The Joint lead managers and joint bookrunners are Affin Hwang Investment Bank Bhd, the Hongkong and Shanghai Banking Corporation Ltd, MUFG Securities Asia Ltd Singapore Branch, and Standard Chartered Bank.
DBS Bank Ltd is the co-manager.
