KUALA LUMPUR: UMW Holdings Bhd says its proposed RM2 billion perpetual sukuk should improve its borrowings structure by enabling it to access the capital markets for longer tenure funding.
The issuance has been assigned a preliminary rating of A1 by RAM Rating Services Bhd.
UMW said it had received the acknowledgement receipt from the Securities Commission over the RM2 billion sukuk.
“The nature of the perpetual sukuk allows it to be treated as part equity from a rating perspective and as 100 per cent equity from an accounting perspective, thereby strengthening UMW’s balance sheet,” UMW said in a statement today.
The proceeds would be used to refinance its existing financing/debt obligations as well as to finance working capital requirements, investments, capital expenditure of its general corporate purposes.
Earlier this month, UMW offered nearly RM1 billion to buy substantial stakes in Perusahaan Otomobil Kedua Sdn Bhd (Perodua) and automotive group MBM Resources Bhd.
It offered to buy a 10 per cent stake in Perodua from Permodalan Nasional Bhd (PNB) for RM417.5 million or RM29.80 per share via cash and new shares.
The cash-and-new shares deal valued Perodua, which is the second national car manufacturer and Malaysia’s largest car company by sales, at RM4.17 billion.
The group will pay RM117.5 million cash and the balance via the issuance of 49.26 million new UMW shares at RM6.09 each for the Perodua stake held by PNB through PNB Equity Resources Corp Sdn Bhd.
UMW currently holds a 38 per cent stake in Perodua, while MBM Resources owns 22.58 per cent stake.