We wish to announce that Affin Islamic Bank Berhad (“Affin Islamic”), a wholly-owned subsidiary of Affin Bank, had on 18 October 2018 issued AT1 Sukuk Wakalah with a nominal value of RM300,000,000 under the Sukuk Programme. The tenure of the AT1 Sukuk Wakalah issued is perpetual on a non-callable 5 years basis. The AT1 Sukuk Wakalah has been assigned a long-term rating of A3 by RAM Rating Services Berhad.

The AT1 Sukuk Wakalah issued under the Sukuk Programme will qualify as Basel III-compliant Additional Tier 1 capital of Affin Islamic, in accordance with the Capital Adequacy Framework for Islamic Banks (Capital Components) issued on 2 February 2018 by Bank Negara Malaysia.

Affin Islamic had on 3 October 2018 lodged the Sukuk Programme with the Securities Commission Malaysia (“SC”) pursuant to the SC’s Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework.

The Sukuk Programme will give Affin Islamic the flexibility to raise funds via issuance of Senior Sukuk Murabahah, Tier 2 Sukuk Murabahah and/or AT1 Sukuk Wakalah from time to time and shall be utilized for the general banking working capital requirements and business purposes of the Affin Islamic, which shall be Shariah compliant.

Affin Hwang Investment Bank Berhad is the Principal Adviser, Lead Arranger and Lead Manager for the Sukuk Programme.

The Principal Terms and Conditions of the Sukuk Programme is available on Affin Islamic’s website at www.affinislamic.com.my.

This announcement is dated 18 October 2018.