Subscribe to our Telegram channel for the latest updates on news you need to know.
KUALA LUMPUR, April 8 — Moody’s gave the AmBank Group (AMMB Holdings Berhad) a positive credit rating following its successful private placement, which is expected to raise RM825 million through the issuance of 300 million shares.
The ratings agency changed AmBank’s A3 rating to negative after the bank announced a RM2.8 billion settlement with the Malaysian government over its role in the 1MDB embezzlement fiasco.
The issuance, at RM2.75 a share, account for around 10 per cent of its share capital. The shares were oversubscribed.
“This is credit positive for AmBank Group and its main operating subsidiary AmBank (M) Berhad because the capital raised will partially offset the reduction in capital as a result of its recent 1Malaysia Development Berhad (1MDB) settlement,” the agency said in its issuer comment.
“Most of the proceeds will strengthen AmBank’s capital. More important, the private placement is evidence of AmBank Group’s commitment to restore its capital to presettlement levels,” it added.