KUALA LUMPUR (April 16): 7-Eleven Malaysia Holdings Bhd is proposing to establish a RM600 million medium-term note programme, the proceeds of which it plans to use for capital expenditure, and to fund its investments, working capital and to refinance existing borrowings. 

In a bourse filing, the convenience store operator said the programme has been lodged with the Securities Commission Malaysia (SC) on April 15.

“The first issue of MTN under the MTN Programme is expected to be issued by the second quarter of 2021. The MTN Programme shall have a tenure of 15 years from the date of first issue of MTN under the MTN Programme,” it said.

RHB Investment Bank is the principal adviser and lead arranger for the MTN programme, while the joint lead managers for the programme are RHB Investment Bank and AmInvestment Bank Bhd.

According to its financial statements for the financial year ended Dec 31,2020 (FY20), 7-Eleven's total borrowings stood at RM533.08 million – about 3.6 times its FY19 total borrowings of RM149.4 million. Its FY20 borrowings comprises RM201.37 million short-term borrowings and RM331.70 million long-term borrowings.
 
Shares in the convenience store operator closed 2.42% or four sen lower at RM1.61 today, valuing it at RM1.99 billion. Its counter on Bursa Malaysia is currently at a level that has not been seen since 2016.