Share placement to boost AMMB’s capital buffers

AMMB planned to raise over RM800mil via a private placement exercise to strengthen its capitalisation levels that were affected following its RM2.83bil settlement with the Finance Ministry for the group’s involvement in the 1MDB scandal.

PETALING JAYA: AMMB Holdings Bhd’s proposed private placement exercise is expected to partially replenish the group’s common equity tier-1 (CET 1) ratio to 11.7%, according to S&P Global Ratings (S&P).

In a statement yesterday, the credit rating agency said proceeds from the share placement would flow into the group’s operating subsidiaries, including AmBank (M) Bhd (BBB+/Negative/A-2), the main banking subsidiary of AMMB.