KUALA LUMPUR: Mulpha International Bhd
’s (MIB) wholly owned indirect subsidiary, Mulpha Strategic Ltd (MSL), has invested US$20 million (US$1 = RM4.04) in senior unsecured fixed-rate notes issued under Hong Kong-based Sun Hung Kai & Co Ltd’s (SHK) US$3 billion medium-term note programme.
The notes were issued under Sun Hung Kai & Co’s US$3 billion guaranteed medium-term note programme.
MSL, incorporated in the British Virgin Islands, is a wholly owned subsidiary of Mulpha Group Services Sdn Bhd, which in turn is a wholly owned subsidiary of MIB.
In a filing with Bursa Malaysia today, MIB said the investment forms part of the group’s treasury and liquidity management strategy, and is included in MSL’s bond portfolio to optimise returns on the group’s cash holdings.
"The subscription is aligned with the group’s approach to managing its funds efficiently, by seeking out investment opportunities that enhance yield while supporting the group’s financial objectives,” it said.
MIB also said the subscription offered an attractive return for MSL compared with the group’s existing deposits with other financial institutions.
"Based on 50 per cent leverage, the investment is expected to achieve an effective yield of approximately 9.2 per cent.
"The investment is anticipated to generate positive cash flows, thereby strengthening the group’s overall financial position,” it said.
The notes carry a fixed coupon rate of 6.75 per cent per annum, payable semi-annually, with a tenure of three years and a maturity date of Jan 22, 2029.
The notes are unconditionally and irrevocably guaranteed by SHK, which is listed on the Hong Kong Stock Exchange.
MIB said the subscription was funded through internal funds and debt financing facilities in the proportion of 50:50.
MIB said the investment involved certain risks, including uncertainties in global market conditions, rising interest rates and currency exchange rate fluctuations.
"The subscription will not have any effect on the share capital and substantial shareholders’ shareholdings of MIB as the subscription does not involve any issuance of new shares in MIB,” it said.
It added that no directors or major shareholders of MIB had any direct or indirect interest in the transaction. - Bernama
