KUALA LUMPUR (Oct 20): Tan Chong Motor Holdings Bhd has today received approval from the Securities Commission for the establishment of a Commercial papers (CP) programme and a Medium term notes (MTN) programme worth a combined nominal value of RM1.5 billion.
In a filing with the stock exchange, Tan Chong said the first issuance of the CP programme and the MTN Programme is expected to take place within two years from today.
The CP Programme and the MTN Programme will have tenures of up to seven years and up to 20 years, respectively, from the date of the first issuance from each of the respective programmes.
According to Tan Chong, RAM Rating Services Bhd has assigned an initial long-term and a short-term ratings of AA2 and P1 respectively for the CP and MTN Programmes.
It said the proceeds from the bonds shall be utilised for capital expenditure, refinancing of bank borrowings, working capital and the general corporate purposes of the group.