Affin Bank to fully redeem RM1bil bonds issued in 2017

KUALA LUMPUR: Affin Bank Bhd says it will fully redeem its first RM1.0 billion of subordinated medium-term notes (MTNs).

The bonds were issued on February 7, 2017 under Affin Bank's overall RM6 billion MTN programme.

Affin Bank said it had today given notice to bondholders to redeem the RM1 billion subordinated MTNs with a coupon of 5.45 per cent.

President and group chief executive officer Datuk Wan Razly Abdullah said the redemption was expected to lower the banks' cost of funds by 10 basis points (bps).

"This will have a positive impact on the banks' profitability," he said in a statement today.

Wan Razly said Affin Banks' AIM22 journey, also known as Metamorphosis Plan, was to transform every corner of the bank completely.

"The success of the AIM22 journey has led to positive transformation in all areas of the bank, especially in cost optimisation," he added.

Affin Bank's financial standing has been improving quarter-on-quarter since it embarked on AIM22, with one of the milestones is the redemption of the subordinated MTNs.

"This exercise will result in immediate financial impact through the savings from interest payments, which will result in a higher net interest margin," the bank said.

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