Mah Sing raising RM1 billion via bond issue

PETALING JAYA: Mah Sing Group Bhd is raising RM1 billion through bond issuance for landbanking and working capital amid the slowing property industry.
The property developer told Bursa Malaysia that on March 3 it had entered into agreements to establish an unrated senior perpetual securities programme of up to RM1 billion.
It had also on March 1 made a lodgment with the Securities Commission Malaysia (SC) under the SC’s Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework.
Mah Sing said the first issuance amounting to RM650 million in nominal value, which has been oversubscribed, is expected by the end of this month.
Proceeds from the fund raising exercise will be primarily earmarked for landbanking and working capital, as well as accelerating construction for projects with good take-up in order to expedite the collection expected from final stage billings on delivery of vacant possession of properties in 2017.
CIMB Investment Bank Bhd is the sole principal adviser, sole lead arranger and sole lead manager for the perpetual securities programme.