PETALING JAYA: Main Market-listed YNH Property Bhd has exercised its contractual option under Clause 6.3 of the trust deed dated July 19, 2019 to defer upcoming coupon payments and accumulated coupon obligations relating to its two outstanding perpetual securities tranches.
The deferments cover an aggregate amount of about RM34.41 million, comprising current coupon obligations, previously deferred amounts and additional coupons accrued to date.
For the RM87 million tranche, the group will defer about RM7.87 million, originally due on July 30, 2026, to the subsequent coupon payment date of Jan 29, 2027. For the RM263 million tranche, the group will defer about RM26.54 million, originally due on Aug 7, 2026, to the subsequent coupon payment date of Feb 8, 2027.
In a statement, YNH said the deferments have been executed strictly in accordance with the contractual parameters of the perpetual securities programme. It has submitted the requisite director certificates confirming its full compliance with the relevant conditions stipulated under Clause 6.3 of the trust deed.
Strategically, the deferment is directly anchored to the group’s impending liquidity event – the proposed sale of its prime freehold land along Jalan Sultan Ismail, Kuala Lumpur, for a cash consideration of RM455 million, as announced on July 8.
Upon the successful completion of this transaction, YNH intends to deploy the proceeds toward the complete redemption of the perpetual securities and the settlement of all outstanding coupon obligations, including any compounded and accrued interest.
In the interim, the deferment allows the group to preserve its existing cash reserves to fund its active development pipeline and continue unlocking value from its broader asset portfolio without disrupting operational momentum.
YNH’s board said: “The group has identified a clear, intended source of funds for the redemption of the [erpetual securities and the settlement of the accumulated coupon obligations. The proposed sale of this secured property represents a definitive step in YNH’s broader capital recycling and balance-sheet strengthening strategy.
“By executing this contractual deferment, we are ensuring that our existing working capital remains dedicated to the execution of our active projects, including Solasta Dutamas and our township developments in Seri Manjung.
“We remain focused on progressing the RM455 million transaction in an orderly manner while prudently managing the group’s operational liquidity. The interests of the perpetual securities holders remain a paramount consideration throughout this transitionary process.”
Under the terms of the trust deed, all deferred coupon amounts remain payable. They will continue to accrue additional coupon and compounding at the prevailing coupon rate until they are settled in full, ensuring the economic interests of the holders are contractually protected.
Moving forward, YNH will continue active engagement with the facility agent and trustee, providing operational and transactional updates in accordance with the trust deed and applicable capital market disclosure requirements.
