SC okays SunREIT RM1.6b debt papers

KUALA LUMPUR (Mar 16): Sunway Real Estate Investment Trust's (SunREIT) proposed issuance of up to RM1.6 billion in commercial papers has been approved by the Securities Commission Malaysia (SC).

According to a statement on Thursday, it said the commercial paper (CP) programme has a seven-year tenure and funds raised would be used to repay existing borrowings granted by Public Bank Bhd. Funds raised would also go towards SunREIT's working capital requirements and defray expenses in relation to the exercise. Money may also be used to finance investment activities such as new capital expenditure, acquisition and financing cost, it added.

The CP programme had been accorded a P1(s) rating by RAM Rating Services Bhd. The CPs would be underwritten by Public Bank. The CPs have a limit of RM1.25 billion in nominal value for the first three years and up to RM1.6 billion for the remaining years of the programme.

Public Investment Bank Bhd is the principal adviser and lead arranger for the exercise.

Earlier this week, SunREIT said it would spend RM200 million in capital expenditure to refurbish Sunway Putra Place to better position the mall as a preferred shopping destination. The mall, which is opposite the Putra World Trade Centre, will be branded as a Lifestyle Urban-Chic attraction for middle to high-middle income shoppers, as well as tourists.

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