Boustead Issues Hybrid Equity
To Strengthen Capital Base
KUALA LUMPUR, November 18, 2013 – Boustead Holdings Berhad (Boustead) today announced that the Securities Commission Malaysia 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 which is highly unique in nature will entail the issuance of hybrid equity in the form of perpetual Junior Sukuk.
YBhg Tan Sri Dato' Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, "We are pleased to undertake a hybrid Programme such as this which is based on Islamic principles, as reflected in the fact that this is also a Junior Sukuk Programme. What is important to note is that once we have completed this exercise, given the hybrid nature of the Sukuk Programme, it will not adversely affect Boustead’s gearing levels. The hybrid equity nature of the Programme will eventually be reflected as part of shareholders’ funds.”
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.
AFFIN Investment Bank is the Principal Adviser and Lead Arranger for the Junior Sukuk Programme.
Since its inception as a modest trading entity more than 180 years ago, the Boustead Group has grown by leaps and bounds to comprise more than 90 subsidiary and associate companies, and has substantial interests in various sectors of the Malaysian economy. The Boustead Group's operations are focused in six key areas; plantation, heavy industries, property, finance & investment, trading & industrial and pharmaceutical. As at 30 June 2013, Boustead Holdings Berhad’s paid-up capital was RM517.1 million while its shareholders’ funds stood at RM4.7 billion. Market capitalisation is over RM5.6 billion.
Forward looking statements
This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Group and certain plans and objectives of Boustead Holdings Berhad with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
on behalf of: Boustead Holdings Berhad
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