KUALA LUMPUR, Nov 18 — Boustead Holdings Bhd announced that the Securities Commission had approved its proposed Junior Islamic Medium-Term Note Programme of up to RM1.2 billion in nominal value (Junior Sukuk Programme).
The Junior Sukuk Programme will entail the issuance of hybrid equity in the form of perpetual Junior Sukuk.
“Once we have completed this exercise, given the hybrid nature of the sukuk programme, it will not adversely affect Boustead’s gearing levels,” said Deputy Chairman/Group Managing Director Tan Sri Lodin Wok Kamaruddin in a statement.
Proceeds from the Junior Sukuk Programme will be utilised to finance capital expenditure, working capital requirements, corporate exercises, repayment of intercompany borrowings and general investments by Boustead and its subsidiaries.
The proceeds will also be used to refinance existing borrowings of Boustead and its subsidiaries.
“The hybrid equity nature of the programme will eventually be reflected as part of shareholders’ funds,” said Lodin. — Bernama
