KUALA LUMPUR, Jan 26 -- Affin Bank Bhd intends to fully redeem its first series subordinated medium-term notes (subordinated MTNs) of RM1.0 billion in nominal value
In a statement today, the bank said the subordinated MTNs were issued on Feb 7, 2017 under the MTN Programme, and it had notified bondholders to redeem its subordinated MTNs with a coupon of 5.45 per cent.
“The redemption of this subordinated MTNs is expected to lower AFFIN Group’s cost of funds by 10 basis points, and this will have a positive impact on the group’s profitability,” said Affin Bank president and group chief executive officer Datuk Wan Razly Abdullah Wan Ali.
According to the statement, the banking group had embarked on the AIM22 Transformation Programme, which resulted in improving financial standing quarter-on-quarter, and one of the milestones was 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,” it said.
-- BERNAMA
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