KUALA LUMPUR (April 25): Eastern & Oriental Bhd (E&O) last Friday (April 22) said that its subsidiary Tanjung Pinang Development Sdn Bhd (TPD) had secured a 0.25% downward revision of the margin of the floating profit rate applicable to the outstanding sukuk murabahah and future of sukuk murabahah to be issued under the first tranche.

In a statement, E&O said TPD had issued RM847.8 million out of the RM1.3 billion first tranche with the remaining RM452.2 million available for issuance, and the 0.25% profit rate reduction would translate into annual cost savings of RM2.1 million based on the current amount issued.

“We are grateful to the sukuk holders for the profit rate reduction as it reflects TPD’s strengthening fundamentals despite the negative effects of the Covid-19 pandemic.

“The first launch of the fully reclaimed Andaman Phase 1, called The Meg, has been well received and we have unveiled the second tower for booking to encouraging response,” said E&O managing director Kok Tuck Cheong.

According to him, proceeds from the proposed irredeemable convertible unsecured loan stock announced earlier in February 2022 is pending approval from the authorities, and will further strengthen the financial position of the group.

“The proceeds will be used to part-finance TPD’s undertaking of reclaiming the 507 acres of Andaman Phase 2 in Penang and to part-fund the development of several new projects in Andaman, Penang and in the Klang Valley,” he added.

E&O was unchanged at 54 sen at the time of writing on Monday, valuing the group at RM797.43 million. Year to date, the counter has tumbled 11.48%.

Edited by Surin Murugiah. 

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