KUALA LUMPUR: Alliance Financial Group Bhd’s (AFG) wholly-owned subsidiary, Alliance Bank Malaysia Bhd (Alliance Bank), has announced the establishment of three separate programmes, namely senior medium term notes, subordinated medium term notes and commercial papers programme.
The objective of the senior medium term notes programme of RM1.5 billion is to enable the bank to tap the capital markets over the next 30 years depending on its funding requirements, AFG said in a statement today.
The subordinated medium term notes programme of RM2.0 billion will enable the bank to raise Basel III compliant Tier-2 capital to meet Bank Negara Malaysia’s regulatory capital requirements pursuant to the Capital Adequacy Framework (Capital Components) which was issued on Nov 28, 2012.
As this is a 30-year programme, the bank may issue subordinated bonds during this period subject to regulatory approval.
The third programme, the commercial papers programme of RM500.0 million will allow the bank to raise short-term funding with tenures of less than one year in the course of the next seven years.
The three programmes would provide the bank with the flexibility to tap the capital market when deemed favourable to meet its general banking, working capital and other corporate purposes.
Alliance Investment Bank Bhd is the principal adviser and lead arranger for the programme. – BERNAMA