KUALA LUMPUR: The Securities Commission has approved Boustead Holdings Bhd’s proposed Junior Islamic medium term note programme of up to RM1.2bil in nominal value.
It said on Monday the Junior Sukuk programme would entail the issuance of hybrid equity in the form of perpetual Junior Sukuk.
“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,” it said.
Boustead Holdings deputy chairman/group managing director, Tan Sri Lodin Wok Kamaruddin said that once the group has 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,” he said.