MNRB Berhad : Unit Issued RM50 Million Subordinated Medium Term Notes

Kuala Lumpur, 15 March 2022 - MNRB Holdings Berhad (MNRB) announced that its wholly-owned subsidiary, Malaysian Reinsurance Berhad (Malaysian Re), had today issued a RM50 million Subordinated Medium Term Notes (MTN), under its RM250 million Subordinated MTN Programme. The said issuance was fully subscribed by MNRB.

Earlier in September 2013, Malaysian Re had established a Subordinated MTN Programme (Programme) for the issuance of up to RM250 million, of which the first issuance of RM1.0 million was made by Malaysian Re on 1 September 2015. This latest issuance of RM50 million represents a drawdown from this Programme. Proceeds from the issuance will be used to strengthen its capital in view of the substantial growth of its Gross Premium during last 9 months. The stronger capital will also support Malaysian Re's Business Remodelling plan, a strategic transformation programme to transform its Business Portfolio over the next few years. As Malaysian Re has accelerated some of the initiatives under its Remodelling Plan, the Company is undertaking a proactive measure to ensure adequate capital to support the acceleration.

"MNRB fully supports Malaysian Re's efforts in strengthening its business growth and expansion plans. The Remodelling Plan is in line with the Group's transformation journey, and we believe that this effort will further contribute to the Group's profitability moving forward," said Zaharudin Daud, President & Group Chief Executive Officer of MNRB.

"The added capital from this issuance will enable Malaysian Re to push further into profitable lines and territories, rebalance its underwriting portfolio and enjoy the diversification benefits from remodelling the portfolio," added Zaharudin.

The Subordinated MTN issued by Malaysian Re qualifies as a Tier 2 capital instrument in compliance with the requirements of the Risk-Based Capital Framework for Insurers issued by Bank Negara Malaysia (BNM).