Yong Tai to raise up to RM1b via sukuk

KUALA LUMPUR (April 11): Yong Tai Bhd has established a sukuk or Islamic Medium Term Note Programme of RM1 billion in nominal value to finance its investment activities, capital expenditure and working capital requirements.

In a Bursa Malaysia filing yesterday, Yong Tai said the sukuk programme shall have a tenure of 20 years, which allows Yong Tai to issue Islamic Medium Term Notes under different tranches from time to time that may be unsecured or secured by different pools of assets or securities during its tenure.

The group lodged the required information and relevant documents relating to the sukuk programme with the Securities Commission Malaysia yesterday.

The first issuance of Islamic Medium Term Notes under the sukuk programme is expected to be issued by the second quarter of 2018, Yong Tai said. Kenanga Investment Bank Bhd is the sole principal adviser, lead arranger and lead manager for the sukuk programme.

Yong Tai shares closed unchanged at RM1.40 yesterday, bringing it a market capitalisation of RM674.2 million.

This article first appeared in The Edge Financial Daily, on April 11, 2018.

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