KUALA LUMPUR (Oct 12): AMMB Holdings Bhd's (AMMB) subsidiary, AmBank (M) Bhd, has received the nod from the Bank Negara Malaysia (BNM) to establish the AT1 and Tier 2 Subordinated Notes Programme that complies with Basel III regulations.

In a filing on Thursday, the group said it received the central bank approval on Tuesday (Oct 10), and submitted the necessary documents concerning the programme to the Securities Commission Malaysia on Wednesday (Oct 11).

The Subordinated Notes Programme conforms to the Capital Adequacy Framework (Capital Components) issued by BNM on Dec 9, 2020 (with any amendments made thereafter). It has a perpetual tenor.

RAM Rating Services Bhd has assigned the programme a long-term rating of AT1 Notes — A2/stable; Tier 2 Notes — AA3/stable.

AmInvestment Bank Bhd, the investment banking subsidiary of AMMB, is the principal adviser, lead arranger, lead manager, and facility agent for the programme.