Eco World's unit issues RM150m unrated medium term notes

KUALA LUMPUR (March 24): Eco Botanic Sdn Bhd has issued RM150 million of unrated medium term notes (MTN) with a tenure of three to five years, of which RM100 million is guaranteed by Danajamin Nasional Bhd.

The issuance on March 23 — its first — is pursuant to an unrated medium term notes programme (MTN programme) of up to RM250 million, proceeds from which the company plans to use mainly to part-finance development costs, working capital requirements, and development rights for its projects located at Eco Botanic and Iskandar Malaysia.

Eco Botanic is a wholly-owned subsidiary of Eco World Development Group Bhd, and in a filing earlier in March, the parent company informed the exchange that the MTN programme comprised of unrated MTNs of up to RM100 million with a tenure of up to five years, and unrated MTNs of up to RM150 million with a tenure of up to seven years, to be guaranteed by Danajamin Nasional.

It said the MTN programme has a tenure of seven years from the date of first issue of the MTNs, and that the tenure of each issue is between one to seven years, provided the relevant notes mature on or prior to the expiry of the programme.

MIDF Amanah Investment Bank Berhad is the Principal Adviser, Lead Arranger and Lead Manager for the MTN programme.

EcoWorld’s share price fell 3 sen or 2.8% to close at RM1.01 on Friday, for a market capitalisation of RM3 billion. — theedgemarkets.com

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