AHBMK 5.800% Perpetual Corp (MYR)

Bond Factsheet

Matured/ Called

AFFIN Bank Bhd

Indicative

Full Lot

Bid Price

99.850

Change in Bid Price

remove 0.017

Bid Yield (%)

Change in Bid Yield

Ask Price

100.300

Change in Ask Price

remove 0.021

Ask Yield (%)

Change in Ask Yield

Indicative price as of 31 Jul 2023, 12:00am

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Bond Information

AFFIN Bank Berhad operates as the financial holding company. The Company, through its subsidiaries, provides financial products and services to individual and corporate businesses such as community, enterprise, corporate, treasury, and investment banking services. AFFIN Bank serves customers in Malaysia.

Bond Issuer

AFFIN Bank Bhd

Guarantor

Announcement Date

19 Jul 2018

Issue Date

31 Jul 2018

Maturity Date

Perpetual

Years to Maturity / Next Call

Perpetual / 0.323

Modified Duration

Issue / Reoffer Price

100.000

Issue / Reoffer Yield

5.800

Coupon Type

Variable

Annual Coupon Rate

5.800

Coupon Frequency

Semi Annually

Seniority

Junior Subordinated

Capital Structure

Junior Subordinated

Reference Rate

Reset Date = 31 Jul 2023 and every 5 Years thereafter
Reset Rate = Prevailing 5 year MGS + 2.015%

ISIN

MYBUZ1800955

CUSIP

AT7607654

Bond Currency

MYR

Total Issue Size

500,000,000

Min. Investment Quantity (Nominal)

MYR 1,000

Incremental Quantity (Nominal)

MYR 1,000

Bond Type

Corporate

Bond Sector

Financials

Bond Sub Sector

Banks

Issuer Credit Rating (S&P/ Fitch/ RAM)

***/ N.R/ AA3

Bond Credit Rating (S&P/ Fitch/ RAM)

***/ N.R/ A3

Shariah Compliant

Exchange Listed

Bond Feature(s)

Loss Absorption

Additional Tier 1

If the Common Equity Tier 1 ("CET1") Ratio (as determined by the CA Framework) of the Issuer, at the consolidated or entity level, falls below 5.125%, the Issuer shall, without the need for the consent of the Trustee or Noteholders, write-off the AT1CS (in whole or in part). The aggregate amount to be written-off must be at least the amount required to restore the Issuer's and its consolidated CET1 Ratio to at least 5.75%. If this is not possible, then the full principal value of the AT1CS will be written-off. Such write off of the AT1CS, together with the write off of other relevant Tier 1 instruments, if any, shall be done on a pro-rata basis.

For the avoidance of doubt, the loss absorption feature in this section entitled "Loss Absorption at the point of breach of CET1 Capital Ratio" will cease to be effective or shall be amended accordingly if BNM's capital adequacy rules no longer apply or have materially changed.

Non-Viability Event

Upon occurrence of a Non-Viability Event, the Issuer shall irrevocably, without the need for the consent of the Trustee or the Noteholders, write-off the AT1CS (in whole or in part), if so required by BNM and/or PIDM at their full discretion. Upon the occurrence of a Non-Viability Event, the Issuer is required to give notice to the Noteholders (via the Trustee) and the Credit Rating Agency in accordance with the terms of the AT1CS, then as of the relevant write-off date:

(i) the write-off shall reduce:

(a) the claim of the AT1CS in liquidation. The Noteholders will be automatically deemed to irrevocably waive their right to receive, and no longer have any rights against the Issuer with respect to, any repayment of the aggregate principal amount of the AT1CS written-off;

(b) the amount repaid when a Call Option, Regulatory Redemption or Tax Redemption is exercised; and

(c) AT1CS Distribution;

(ii) the write-off shall be permanent and the full or part (as the case may be) of the principal amount of the AT1CS will automatically be written-off to zero and the whole or part (as the case may be) of the AT1CS will be cancelled; and

(iii) the write-off of the AT1CS shall not constitute an Enforcement Event or trigger cross-default clauses.

For the avoidance of doubt, the loss absorption feature in this section entitled "Non-Viability Loss Absorption" will cease to be effective or shall be amended accordingly if BNM's capital adequacy rules no longer apply or have materially changed.

A "Non-Viability Event" shall be the earlier of the following:

(i) the Relevant Malaysian Authority (the "Relevant Malaysian Authority" means BNM, jointly with the Malaysia Deposit Insurance Corporation ("PIDM")) notifies the Issuer in writing that the Relevant Malaysian Authority is of the opinion that a write-off is necessary, without which the Issuer would cease to be viable; or

(ii) the Relevant Malaysian Authority publicly announces that a decision has been made by BNM, PIDM, or any other federal or state government in Malaysia, to provide a capital injection or equivalent support to the Issuer, without which the Issuer would cease to be viable.

Deferral Interest Payment

Non-Cumulative Deferral

The Issuer may, at its sole discretion and without prior notice to the Noteholders, taking into account its specific financial and solvency condition, elect to cancel any payment of Distribution, in whole or in part, on a non-cumulative basis. Any Distribution that has been cancelled shall no longer be due and payable at any time by the Issuer and shall not accrue, whether in a winding up situation or otherwise. Cancellation of a Distribution shall not constitute an Enforcement Event and does not entitle the Noteholders to petition for the insolvency or winding-up of the Issuer. If the Issuer does not make a Distribution payment on the relevant Distribution Payment Date (or if the Issuer elects to make a payment of a portion, but not all, of such Distribution payment), such non-payment or partial payment shall serve as evidence of the Issuer's exercise of its discretion to cancel such Distribution payment (or portion of such Distribution payment not paid), and accordingly such Distribution payment (or the portion thereof not paid) shall not be due and payable.

Dividend Stopper

If, on any Distribution Payment Date, payment of Distributions scheduled to be made on such date is not made by reason under the section entitled "Other terms and conditions - Limitation on Payment", the Issuer shall not:

(i) declare or pay, or permit any subsidiary of the Issuer to declare or pay, any dividends or other distributions in respect of Junior Obligations (as defined in the section entitled "Other terms and conditions - Status") (or contribute any moneys to a sinking fund for the payment of any dividends or other distributions in respect of any such Junior Obligations);

(ii) declare or pay, or permit any subsidiary of the Issuer to declare or pay, any dividends or other distributions in respect of Parity Obligations (as defined in the section entitled "Other terms and conditions - Status") the terms of which provide that the Issuer is not required to make payments of such dividends or other distributions in respect thereof (or contribute any moneys to a sinking fund for the payment of any dividends or other distributions in respect of any such Parity Obligations);

(iii) redeem, reduce, cancel, buy-back or acquire, or permit any subsidiary of the Issuer to redeem, reduce, cancel, buy-back or acquire, any Junior Obligations (or contribute any moneys to a sinking fund for the redemption, capital reduction, buy-back or acquisition of any such Junior Obligations); or

(iv) redeem, reduce, cancel, buy-back or acquire, or permit any subsidiary of the Issuer to redeem, reduce, cancel, buy-back or acquire, any Parity Obligations the terms of which provide that the Issuer is not required to redeem, reduce, cancel, buy-back or acquire such Parity Obligations (or contribute any moneys to a sinking fund for the redemption, capital reduction, buy-back or acquisition of any such Parity Obligations,

in each case, until (a) the next scheduled Distributions to be paid in respect of such number of consecutive distribution periods as shall be equal to or exceeding twelve (12) calendar months have been paid in full (or an amount equivalent thereto has been paid, or irrevocably set aside in a separate designated trust account for payment to the Noteholders); or (b) the Issuer is permitted to do so by an extraordinary resolution of the Noteholders.

Issuer Call

In respect of each series of AT1CS with a Call Option, the Issuer may, at its sole discretion, and subject to the Redemption Conditions being satisfied, redeem that series of AT1CS (in whole or in part) on any Call Date at the Redemption Amount (as defined below). The optional redemption of one series of the AT1CS shall not trigger the redemption of other series of the AT1CS.

"Redemption Conditions" mean:

(i) the Issuer has obtained the written approval of BNM prior to redemption of that series of AT1CS or part thereof;

(ii) the Issuer is solvent at the time of any redemption of that series of AT1CS or part thereof and immediately thereafter;

(iii) the Issuer is not in breach of BNM's minimum capital adequacy requirements and capital buffer requirements applicable to the Issuer after redemption of that series or part of such series of the AT1CS; and

(iv) the Issuer shall:

(a) replace that series of the AT1CS or part thereof to be redeemed with capital of the same or better quality and the replacement of this capital shall be done at conditions which are sustainable for the income capacity of the Issuer; or

(b) demonstrate to BNM that its capital position is well above the minimum capital adequacy and capital buffer requirements after redemption of such series of the AT1CS.

First Call Date: Jul 2023

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