Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 15): Mah Sing Group Bhd has raised RM145 million via the issuance of unrated senior perpetual securities under the group's RM1 billion unrated senior perpetual securities programme that was established in March last year.

It plans to use proceeds from this issuance for investments like landbanking and joint ventures, capital expenditure and working capital to accelerate construction of projects that have good take-ups, Mah Sing said in a stock exchange filing.

It has already identified land parcels in the Greater Kuala Lumpur area that may fit into its business model.

"At this juncture, the group is conducting various stages of exploration and negotiations with land owners/vendors, as such initiative is in line with the group's plan to increase its Greater Kuala Lumpur portfolio within the next two to three years," the filing read.

CIMB Investment Bank Bhd is the sole principal adviser, sole lead arranger and sole lead manager for the perpetual securities issuance.

Prior to this issuance, Mah Sing had, on Apr 3 last year, completed the first issuance of unrated senior perpetual securities with RM650 million in nominal value under the same RM1 billion programme.

Back then, the group said the perpetual securities carry a coupon rate of 6.9% per annum from the first to fifth year, payable semi-annually.

Such coupon rate will be stepped up after the fifth year. The perpetual securities have no fixed maturity date but are callable five years later from date of issuance, and on each coupon payment date thereafter at its nominal value. According to Mah Sing's annual report for financial year ended Dec 31, 2017, the net proceeds from the first issuance was RM645.21 million, net of discounts and transaction cost.

Mah Sing closed 0.5 sen or 0.5% higher at RM1.00 today, giving it a market capitalisation of RM2.43 billion.

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