Latest news with #Affin
The Star
13 hours ago
- Business
- The Star
Affin Group debuts in US bond market with US$300mil note issue
KUALA LUMPUR: Affin Group made its debut in the US dollar bond market with the issuance of the senior unsecured notes with a nominal value of US$300 million (RM1.27 billion) under its US$2 billion (RM8.46 billion) euro medium term note (EMTN) programme. The bank said in a statement today that the issuance follows the establishment of the EMTN programme and Affin's recent inaugural international credit rating of A3 (Stable) from Moody's Investor Services, Inc. "The notes were priced at 105 basis points (bps) over the five-year US Treasury yield, offering a fixed rate of 5.112 per cent per annum and rated A3 (Stable) by Moody's Investor Services Inc, affirming the bank's robust credit profile and stable outlook. "The issuance attracted strong global demand, with the final order book exceeding US$1 billion across 67 investor accounts, representing 3.5 times oversubscription,' it said. Affin said the distributions geographically comprised 87 per cent to Asia, 11 per cent to Europe, Middle East, and Africa (EMEA), and two per cent to offshore US investors. It said that by investor type, the notes were allocated 72 per cent to asset, fund managers/insurance, 24 per cent to banks, and four per cent to private banks/others. Meanwhile, Affin Group president and group chief executive officer Datuk Wan Razly Abdullah said the bank's debut in the US dollar bond market marks a significant progression in the group's 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 added. - Bernama
New Straits Times
14 hours ago
- Business
- New Straits Times
Affin makes first foray into US dollar bond market, raises US$300mil
KUALA LUMPUR: Affin Group has raised US$300 million through its first-ever US dollar bond issuance, marking a key milestone as it taps into the global capital market. 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.
The Sun
14 hours ago
- Business
- The Sun
Affin Group debuts in US bond market with US$300m note issue
KUALA LUMPUR: Affin Group made its debut in the US dollar bond market with the issuance of the senior unsecured notes with a nominal value of US$300 million (RM1.27 billion) under its US$2 billion (RM8.46 billion) euro medium term note (EMTN) programme. The bank said in a statement today that the issuance follows the establishment of the EMTN programme and Affin's recent inaugural international credit rating of A3 (Stable) from Moody's Investor Services, Inc. 'The notes were priced at 105 basis points (bps) over the five-year US Treasury yield, offering a fixed rate of 5.112 per cent per annum and rated A3 (Stable) by Moody's Investor Services Inc, affirming the bank's robust credit profile and stable outlook. 'The issuance attracted strong global demand, with the final order book exceeding US$1 billion across 67 investor accounts, representing 3.5 times oversubscription,' it said. Affin said the distributions geographically comprised 87 per cent to Asia, 11 per cent to Europe, Middle East, and Africa (EMEA), and two per cent to offshore US investors. It said that by investor type, the notes were allocated 72 per cent to asset, fund managers/insurance, 24 per cent to banks, and four per cent to private banks/others. Meanwhile, Affin Group president and group chief executive officer Datuk Wan Razly Abdullah said the bank's debut in the US dollar bond market marks a significant progression in the group's 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 added.
Borneo Post
21-05-2025
- Business
- Borneo Post
Affin yet to see major contribution from Sarawak govt despite strong CASA growth
While Affin's Sarawak presence continues to strengthen through increased non-state-backed deposits, synergies from its strategic push into the state have yet to be fully realised. KUCHING (May 21): Affin Bank has yet to see meaningful contribution from the Sarawak government in its loans and deposits despite healthy current account savings account (CASA) growth and steady earnings, says analysts with Kenanga Research. The research house noted that while Affin's Sarawak presence continues to strengthen through increased non-state-backed deposits, synergies from its strategic push into the state have yet to be fully realised. 'We gathered that the Sarawak state government is still not a significant component in AFFIN's loans and deposit books, suggesting that synergies have yet to be reflected,' it said in a note on Tuesday. To recap, the bank has posted first-quarter financial year 2025 (1QFY25) net profit of RM124.1 million supported by stronger net income, which was in line with expectations and accounting for 20 per cent of Kenanga's full-year forecast and 22 per cent of the consensus forecast. Analysts highlighted that Affin has already surpassed its full-year CASA target of 31 per cent, with deposits in Sarawak helping to offset a decline in working capital loans. These now make up 16 per cent of the group's loan portfolio, amid uncertainties in global trade. 'This comes even before AFFIN implements payroll services to accommodate up to 30,000 civil servants in the state,' it added. Similarly, TA Securities viewed the group's CASA performance positively with its growth driven by strong corporate flows. 'This could improve further with the potential addition of Sarawak's payroll mandate,' it said. Kenanga Research added that a stronger relationship with the Sarawak government could serve as a key catalyst for the bank moving forward. 'Near-term catalysts could emerge from the Sarawak State Government's eventual large CASA deposits injection into Affin. 'From our own model estimates, every RM1 billion in new CASA deposits could lower cost of funds by 3 basis points and generate a return on equity (ROE) improvement of 10 basis points,' the research house added. Affin Bank Kenanga Research
The Star
21-05-2025
- Business
- The Star
Affin-AMMB merger will be dilutive due to significant new shares issuance
KUALA LUMPUR: CIMB Securities Sdn Bhd expects the potential merger between Affin Bank Bhd and AMMB Holdings Bhd to entail significant issuance of new shares, which will likely be quite dilutive. In a note today, CIMB Securities said it assessed two possible merger scenarios for Affin and AMMB, although itwasnot particularly enthusiastic about the merger. "A merger between two domestic banking entities would necessitate the acquisition of the entire stake, given that banks are not allowed to hold two banking licenses. "If Affin acquires AMMB at a price-to-book value ratio (P/BV) of one time, Affin will need to issue a significant 7.7 billion new shares at the current market price of RM2.60 to acquire 100 per cent of AMMB,' it said. CIMB Securities said the scenario would mean a several-fold increase in Affin's issued shares to 10.25 billion from 2.5 billion shares currently. On the other hand, it said the second scenario would see AMMB acquiring Affin at a P/BV of one time, which would still lead to a significant 63.8 per cent increase in AMMB's issued shares base. "AMMB's target price would decline to RM4.27 (current: RM5.70) based on a return on equity of 7.8 per cent (current: 8.6 per cent) and a fair P/BV of 0.7 times (current: 0.9 times). "The target price may be increased if AMMB were to buy Affin at a P/BV of 0.6 times or lower (implying an acquisition share price of only RM2.75 or lower for Affin), which may lead to AMMB's target price moving up to RM6.35 for the financial year 2026,' it said. However, CIMB Securities noted that an excessively low acquisition price for Affin's shareholders may be deemed unpalatable by Affin's minority shareholders. Recently, news reports indicated that the Sarawak government may be looking to buy a stake in another bank and merge it with Affin, and AMMB's major shareholder has reportedly been approached. The Sarawak government has since denied sending any government representative to discuss the matter with Amcorp Group Bhd, but it is reported that it remains open to negotiating with any entity that wants to collaborate with the state government. - Bernama
