Sunway unit establishes MTN programme of up to RM999m

PETALING JAYA: Sunway Bhd's 60%-owned subsidiary Sunway Parkview Sdn Bhd has established a medium-term notes (MTN) programme of up to RM999 million and made the first issuance of MTNs of RM300 million on Friday.
In a filing with Bursa Malaysia, Sunway said the MTN programme will have a tenure of up to 30 years from the date of the first issue, which allows Sunway Parkview to issue different tranches of MTNs from time to time.
The Tranche 1 MTNs are issued in four series with tenure of between nine and 12 years, guaranteed by Sunway up to 60% of the indebtedness and are secured by, amongst others, charge over lease on 10 parcels of adjoining development land.
The land, measuring 152.73 acres in total, has been earmarked for residential and commercial use and is located in Medini Iskandar Zone F, Johor.
Proceeds from the Tranche 1 MTNs will be used to part finance or reimburse Sunway Parkview's cost of acquiring the lease(s) over the land from Sunway Iskandar Sdn Bhd.
The MTNs issued under the MTN programme are unrated, non-tradable and non-transferable. Sunway Parkview had on Sept 22, 2017 lodged with the Securities Commission Malaysia the required information and relevant documents relating to the MTN programme.
Public Investment Bank Bhd is the principal adviser and lead arranger for the MTN programme.
Sunway's share price rose 2.79% to close at RM1.84 on Friday with a total of 16.97 million shares traded, giving it a market capitalisation of RM8.88 billion.