KUCHING: Dayang Enterprise Holdings Bhd (DEHB) will make the first issuance of unrated Islamic medium term notes (Sukuk Murabahah) Programme within 60 business days from Oct 22, 2019, the day it made a lodgement with Securities Commission Malaysia (SC).
The lodgement pursuant to SC’s Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework is in relation to the establishment of the Sukuk Murabahah Programme and the issuance of Sukuk Murabahah by DEHB.
Maybank Investment Bank Bhd and United Overseas Bank (Malaysia) Bhd are the joint principal advisers and joint lead arrangers for the Sukuk Murabahah Programme.
Dayang has proposed the issuance of an unrated Islamic medium term notes under the Sukuk Murabahah Programme of up to RM682.5 million in nominal value which will be primarily subscribed by licensed financial institutions.
“The Sukuk Murabahah Programme shall have a tenure of eight years and the first issuance under the programme will be made within 60 business days from the lodgement date.
“Proceeds from the issuance of Sukuk Murabahah shall be utilised to part finance the settlement sum (which shall include the principal and profit/interest amount due) for certain specified financing facilities of DEHB and its group of companies,” DEHB said in a filing with Bursa Malaysia.
DEHB is establishing the Sukuk Murabahah Programme as part of its group-wide debt restructuring exercise.
From the proceeds of the issuance, DEHB will advance RM365 million to its subsidiary Perdana Petroleum Bhd (PPB) for the early redemption of the PPB Sukuk Murabahah prior to PPB’s proposed rights issue of redeemable convertible preference shares (RCPS) of up to RM506 million in value.
DEHB will subscribe up to RM455 million in value of the RCPS issued by PPB. The amount advanced by DEHB is regarded as the amount owing to DEHB by PPB.
To recap, PPB issued RM635 million in nominal value of Sukuk Murabahah in five tranches on April 26, 2016. The company has since repaid three tranches of RM90 million each which had matured in April, 2017, 2018 and 2019.
The fourth and fifth tranches with nominal value of RM90 million and RM275 million respectively will mature on April 20, 2020 and April 28, 2021 respectively. With the advances from DEHB, PPB is expected to repaid them via early redemption.
The third to fifth tranches of repayment form part of the PPB group’s debt under the Corporate Debt Restructuring Committee’s (CDRC) debt restructuring scheme.
Meanwhile, Revenue Group Bhd has proposed to undertake a bonus issue of up to 230,043,080 shares on the basis of two bonus shares for every three existing ordinary shares held by entitled shareholders and on an entitlement date to be fixed later.
The bonus shares will be issued as fully paid, at no consideration and without capitalisation of the company’s reserves.
The exercise will increase the number of Revenue shares but will not increase the value of issued share capital of Revenue, the company told Bursa Malaysia.
On the rationale for the bonus issue, Revenue said it serves to reward the existing shareholders for their support by enabling them to have greater participation in the company’s equity, and also to enhance the marketability and trading liquidity of Revenue shares.
