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KUALA LUMPUR (June 15): Maju Expressway Sdn Bhd (MESB) has defaulted on its RM50 million bond principal after failing to redeem its outstanding amount, according to facility agent CIMB Investment Bank Bhd.
CIMB said in a filing today with Bank Negara Malaysia’s (BNM) Fully Automated System for Issuing/Tendering (FAST) website that the outstanding nominal value of RM50 million had not been redeemed upon its maturity today (June 15, 2021).
"Therefore, it has been suspended," the bank said.
Typically, whenever a bond issuer defaults, the company may opt for one of three possible outcomes — a debt restructuring, winding up or judicial management.
MESB, which is owned and operated by Maju Holdings Sdn Bhd, is the concessionaire of the 26km Maju Expressway, which links the Kuala Lumpur city centre with Cyberjaya and Putrajaya.
On April 27, MEX II Sdn Bhd, another Maju Holdings subsidiary, deferred its RM1.3 billion Islamic medium term notes' principal repayment and profit payment for up to four months.
A few days prior to that, it was reported that MEX II had deferred coupon payment due on April 30, 2021 for the highway operator’s RM150 million junior bonds as the requisite conditions pursuant to the trust deed dated April 20, 2016 had yet to be fulfilled.
MEX II was set up to issue bonds to raise money to finance the proposed 18km Putrajaya-KLIA highway, according to MESB.
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