AFFIN Group has successfully entered the US dollar bond market for the first time, raising USD $300 million through the issuance of Senior Unsecured Notes.
The bond offering saw overwhelming demand from global investors, with total orders exceeding USD1 billion, more than 3.5 times the amount offered.
This bond is part of AFFIN’s USD2 billion Euro Medium Term Note (EMTN) Programme, which provides the group a platform to raise funds in foreign currencies.
The bond was priced at a fixed interest rate of 5.112% per year, with a maturity of five years.
It is rated A3 with a stable outlook by Moody’s, reflecting the bank’s strong financial position and creditworthiness.
The response from investors was highly positive. Most of the demand came from Asia (87%), with the rest from Europe, the Middle East, Africa, and offshore US investors.
The majority of the buyers were asset managers and insurance companies, followed by banks and private banks.
AFFIN’s President & Group CEO, Datuk Wan Razly Abdullah, said this successful debut in the USD bond market is an important step in the Group’s growth strategy.
It also reflects strong investor confidence in AFFIN’s business and future plans, which are guided by their AFFIN Axelerate 2028 (AX28) roadmap.
The bonds will be listed on the Singapore Exchange, with Affin Hwang Investment Bank, HSBC, MUFG, Standard Chartered, and DBS Bank managing the issuance.
This move not only helps AFFIN raise funds internationally but also positions the bank among top Malaysian financial institutions tapping into global capital markets.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
