Perpetual bonds continue to be in focus

YNH Residensi Bangsar South project. Perpetual bonds are typically secured by assets, which is why property developers have been able to issue billions of ringgit worth of perpetual bonds in Malaysia.

YNH Property Bhd has decided to step up its interest payment on its RM263mil perpetual bond issuance, which it first issued in August 2019.

The call date for that tranche of bonds is Aug 7, 2024, but instead of redeeming the bonds, YNH Property has decided to pay the higher “step-up” interest of 8.85% from 6.85%.