YNH Property defers perpetual bond coupon payments to conserve cash

KUALA LUMPUR (Jan 26): YNH Property Bhd (KL:YNHPROP) said on Friday it has exercised its contractual right to defer upcoming coupon payments under its RM750 million unrated perpetual securities programme as part of efforts to conserve cash and strengthen liquidity.

The deferral applies to coupon payments scheduled for Jan 30, 2026, for tranche PZ200008, and Feb 9, 2026, for tranche PZ190009, the company said in a filing with Bursa Malaysia.

Tranche PZ200008 has a nominal value of RM263 million and was issued on Aug 7, 2019, while tranche PZ190009 has a nominal amount of RM87 million and was issued on July 30, 2020.

Both tranches carry an initial coupon rate of 6.85% per annum and are redeemable at YNH Property’s option at the end of five years after issuance and on each subsequent semi-annual coupon payment date.

In a statement, YNH Property said notices of the deferrals, together with the required compliance certificates, were issued to the facility agent and trustee on Jan 23.

The company said the deferral is a feature of the perpetual securities structure and does not constitute an event of default.

It added that the deferred coupons are cumulative, meaning the unpaid amounts will continue to accrue and remain payable to holders at a later date.

YNH Property said the move allows the group to retain cash to support ongoing development projects, income-generating assets and operational requirements.

“The board’s decision reflects a deliberate choice to prioritise project continuity and disciplined execution at this stage, while preserving long-term value for all stakeholders,” it said.

The group said it remains focused on stabilising operations, with management continuing to monitor cash flows and balance capital commitments between project delivery and debt servicing.

As of the end of September, YNH Property had cash and cash equivalents of RM9.87 million, compared with borrowings of RM427 million.

Shares in YNH Property were unchanged at 27 sen on Friday, giving the company a market capitalisation of RM142.8 million.

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