KUALA LUMPUR (Nov 15): Mah Sing Group Bhd has made an early redemption of its RM145 million unrated senior perpetual securities on the first callable date Nov 15, under the group’s RM1 billion unrated senior perpetual securities programme that was established in March 2017.
The group had planned to use the proceeds from the perpetual securities for investment purposes such as landbanking, joint ventures, capital expenditure and working capital to accelerate construction projects that have good take-up rates in 2018.
When the perpetual securities were issued in 2018, the group said it had identified land parcels in the Greater Kuala Lumpur area that might fit into its business.
The group also said it was conducting various stages of exploration and negotiations with landowners/vendors, in line with its group to increase its Greater Kuala Lumpur portfolio within the next two to three years.
In its latest quarterly report, Mah Sing said the perpetual securities have helped the group achieve its goal as it now has development projects such as M Vertica in Cheras, M Centura in Sentul, M Oscar in Off Kuchai Lama, M Aruna in Rawang, M Arisa in Sentul, M Luna in Kepong, M Adora in Wangsa Melawati, and Southville City in KL South.
The perpetual securities carry a coupon rate of 6.9% per annum from the first to fifth year, payable semi-annually, which will be stepped up after the fifth year onwards.
However, the perpetual securities which have no fixed maturity date can be called after five years from the date of issuance on each coupon payment date thereafter at its nominal value.
For the six months ended June 30, 2021, the property developer doubled its net profit to RM88.19 million from RM43.1 million a year earlier, as revenue rose to RM851.99 million from RM699.75 million.
Mah Sing's share price rose one sen or 1.37% to 74 sen, giving the group a market capitalisation of RM1.78 billion.
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