MoU for additional shares in Affin Bank inked

KUCHING: The Sarawak government and Armed Forces Fund Board (LTAT) have agreed to proceed with a sale and purchase agreement for additional shares in Affin Bank, pending the necessary regulatory approvals.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg pointed out that with the agreement between the two entities, Affin Bank can have access to the network under the wider Sarawak where it can work together and leverage on its investment banking and treasury capabilities.

Moreover, he added, the bank can also expand its environmental, social and governance (ESG) credentials as well as increase its sustainable financing initiatives under its five-year ESG Roadmap.

“Sarawak has several green initiatives in the pipeline, and I believe there are opportunities for Affin Bank to participate and expand its ESG portfolio.

“Certainly, Affin Bank can expand its retail customer base as there are untapped potentials in the retail market in Sarawak. Opportunities to work with Affin Bank are wide, amongst others in areas of promoting cashless payments and adoption of digital banking in Sarawak.

“Additionally, Affin Bank can explore collaborations to support small and medium scale enterprises (SMEs) in providing access to affordable financing, whilst increasing literacy and leveraging on Affin Bank’s networking platform,” he said.

He said this during the Memorandum of Understanding (MoU) between the state government and LTAT at Affin Tower in Kuala Lumpur today.

Following this, he believed that such a move will have an added impact to Sarawak’s development as it would provide a financial platform to boost the economy further through the development of SMEs and entrepreneurship programmes and to serve Sarawak in general.

“Together with its distinguished shareholders, Affin Bank would expand its reach, enhance innovation, increase efficiency, and deliver shareholders’ value. I am confident that these synergies will solidify Affin Bank’s position as one of the key players in the financial industry.

“This first collaboration with LTAT is just the beginning of bigger possibilities and opportunities. Indeed, the signing of this MoU will establish a platform for Sarawak to further have a collaboration with LTAT,” he said.

Earlier, it was reported by The Edge Malaysia that a planned sale and purchase agreement between Sarawak and Affin Bank Bhd’s biggest shareholder, LTAT, that would have formalised the state’s plan to increase its stake in the lender to around 30 per cent from 4.8 per cent currently, has been delayed.

According to the report, the signing ceremony has been postponed as Sarawak looks to ‘clarify some conditions’ that Bank Negara Malaysia (BNM) had attached to the deal.

Instead of the sale and purchase agreement, a MOU was inked between Sarawak and LTAT instead to explore strategic investments between the two parties.