KUALA LUMPUR (Sept 21): Alliance Financial Group Bhd has proposed to raise RM4 billion via bonds to finance working capital needs and existing debt redemption.

In a statement to the exchange today, Alliance Financial said it was undertaking the three-tranche bond issue via wholly-owned Alliance Bank Malaysia Bhd.

According to Alliance Financial, the RM4 billion exercise comprises a RM1.5 billion medium term notes (MTN) programme, RM2 billion MTN scheme and RM500 million commercial paper exercise.
 
Alliance Financial said both MTN programmes would have a 30-year duration, while the commercial paper exercise would be valid for seven years.

Alliance Investment Bank Bhd is the adviser and lead arranger for the entire exercise.

The Securities Commission had last Friday (Sept 18), received the required information on the debt exercise from Alliance Financial group, according to the issuer.

At 12:30pm today, Alliance Financial shares rose three sen or 0.9% to settle at RM3.48, for a market capitalisation of RM5.39 billion.

The stock had fallen 26% this year, underperforming the FBM KLCI's 6% decline.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)