Affin makes first foray into US dollar bond market, raises US$300mil
The senior unsecured notes, issued under the group's US$2 billion Euro Medium Term Note (EMTN) programme, drew strong interest from international investors, with demand exceeding US$1 billion, more than three times the offer size.
Affin president and group chief executive officer Datuk Wan Razly Abdullah said the deal reflects growing investor confidence in the bank's fundamentals.
"The overwhelming response underscores investor confidence in our fundamentals and validates the credibility we have established," he said in a statement.
The notes were priced at a fixed rate of 5.112 per cent per annum or 105 basis points above the five-year US Treasury yield.
They are rated A3 with a stable outlook by Moody's Investor Services Inc, following Affin's recent international credit rating.
Most of the notes were taken up by Asian investors, accounting for 87 per cent, followed by 11 per cent from Europe, the Middle East and Africa and two per cent from offshore US accounts.
By investor type, fund managers and insurers took the lion's share at 72 per cent, followed by banks at 24 per cent and private banks and others with four per cent.
Affin said the EMTN programme gives it greater flexibility to raise funds in foreign currencies, supporting its broader push to grow internationally.
The notes will be listed on the Singapore Exchange.
Affin Hwang Investment Bank Bhd, HSBC, MUFG, and Standard Chartered are joint lead managers and bookrunners for the issuance, with DBS Bank Ltd acting as co-manager.
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