Kuala Lumpur (Nov 3): Lifestyle property developer Eastern & Oriental Bhd (E&O) will raise up to RM500 million through private issue of debt securities (PDS), which will be used for investments, property development expenditure, working capital and/or general corporate purposes across the group.
In a statement today, E&O said it had obtained the Securities Commission’s (SC) nod via a letter received on Oct 31, for the purpose.
This follows E&O’s earlier announcement to Bursa Malaysia on Sept 5, 2014, proposing a PDS issue of 20-year medium-term notes programme and/or seven-year commercial papers programme.
“With the SC’s approval, we are closer to realising our proposal to raise close to half a billion of funds on a fixed funding cost for a period of five years, enabling us to reduce our exposure to interest rate fluctuations, which in turn will allow us to manage our cash flow more efficiently,” said E&O deputy managing director Eric Chan Kok Leong.
He added that E&O is poised for the next level of growth in line with its three-year business plan.
“The funds to be raised from the proposed PDS will support us as we venture into this new phase of E&O’s evolution with catalyst projects such as Seri Tanjung Pinang Phase 2, Avira Medini Iskandar and Elmina West,” he said.