Press Metal plans to issue up to RM1.7bil notes

Press Metal smelting plant in Samalaju

KUALA LUMPUR: Press Metal Aluminium Holdings Bhd’s recently-incorporated unit Press Metal (Labuan) Ltd plans to issue US-dollar denominated senior notes of up to US$400mil (RM1.7bil).

In a filing with Bursa Malaysia, South-East Asia’s largest aluminium smelter said the net proceeds from the issuance of these Regulation S notes, if and when successfully issued, would be used to refinance existing debts and for general corporate purposes.

(Regulation S was enacted by the US Securities and Exchange Commission to allow offers of securities outside of the US without registration under the Securities Act.)

Press Metal said it had received Bank Negara’s approval on Friday for the issuance of these notes with a five-year tenure.

Press Metal recently reported unaudited earnings of RM298.22mil for the first half-year ended June 30, 2017, up 24% from the corresponding period last year, on 43% higher revenue of RM4.1bil.

The Press Metal group’s gearing was reduced from 1.3 times to 1.1 times during the last financial year, mainly contributed by the increase in its shareholders’ net worth and reduction in its borrowings due to loan repayments.