KUALA LUMPUR (Aug 9): Southeast Asia’s largest aluminium smelter Press Metal Aluminium Holdings Bhd has proposed an Islamic medium term notes (IMTN) programme of up to RM5 billion to raise funds for its Shariah-compliant general corporate purposes.

The proceeds from the sukuk issuance shall be utilised for the group’s general corporate purposes including capital expenditure, working capital requirements, investments and refinancing of existing financing/borrowings, said Press Metal in a filing with the local stock exchange today.

In June, Press Metal’s group chief executive officer and co-founder Tan Sri Paul Koon Poh Keong told reporters after its annual general meeting that the company is on the lookout for companies to be acquired.

The potential acquisition could possibly be funded via a sukuk or bond issuance to raise cash, he said in June, “but one thing for sure is that it’s not a rights issue”.

Furthermore, in a statement issued after the AGM, Koon also noted that Pres Metal is still in expansion mode and it will tap into the debt market to fund growth given that its net gearing is at a reasonable level.

“The capital injection for this asset is progressive in nature and therefore our gearing will continue to be manageable with our anticipated strong cashflow,” said the statement.

On today’s announcement, the proposed Sukuk Programme shall have a tenure of 30 years and is structured based on the Shariah principle of Wakalah bi al-Istithmar, said Press Metal.

Maybank Investment Bank Bhd is the sole Principal Adviser, Lead Arranger and Lead Manager for the Sukuk Programme.

Shares of Press Metal closed five sen or 1.04% higher at RM4.86, valuing the company at RM19.61 billion.

Read also:

https://www.theedgemarkets.com/article/press-metal-prowl