KUALA LUMPUR: Sports Toto Bhd
(SPToto) has invested RM17mil in Islamic medium-term notes (IMTN) issued by Berjaya Yokohama Sdn Bhd, a subsidiary of Berjaya Corp Bhd.
In a filing with Bursa Malaysia, SPToto said its wholly owned subsidiary Magna Mahsuri Sdn Bhd subscribed for RM17mil in nominal value of the notes under Berjaya Yokohama’s Sukuk Murabahah Programme on Aug 20.
Berjaya Yokohama is wholly owned by Berjaya Group Bhd, which in turn is wholly owned by Berjaya Corp.
SPToto said the investment, funded through internal funds, would allow the group to optimise its cash by earning a fixed return of 7% per annum, higher than conventional deposit placements.
The IMTN programme has an issue size of up to RM1bil and matures on Oct 2, 2054. The notes carry a fixed profit rate of 7% per annum, payable semi-annually.
The notes are unrated and unsecured, with Berjaya Group acting as guarantor. Each issuance has a one-year tenure with an option to roll over up to the programme's maturity date.
SPToto said the subscription would have no material impact on its net assets, earnings or gearing for the financial year ending June 30, 2027.
SPToto chairman and executive director Datuk Seri Robin Tan Yeong Ching is also a director of Berjaya Yokohama, while SPToto chief executive officer and executive director Nerine Tan Sheik Ping is a shareholder of both SPToto and Berjaya Corp.
Both abstained from board deliberations and voting on the subscription.
