Saturday, December 4, 2010

Kencana to raise RM350m via debt papers, warrants

KUALA LUMPUR: KENCANA PETROLEUM BHD [] plans to raise RM350 million from a corporate exercise which includes the issuance of debt papers with detachable warrants.

Kencana said on Friday, Dec 3 it proposed to issue up to five years nominal value Islamic Securities with detachable warrants on a 'bought deal' basis with AmInvestment Bank as the primary subscriber.

AmInvestment Bank would then offer for sale the provisional rights to the allotment of the warrants to Kencana shareholders. Kencana also proposed to place out up to 10% of its paid-up share capital.

The company said the fund-raising proposals were the most appropriate means of raising funds as the proposed Islamic securities with warrants would allow it to lock in medium term fixed rate financing at competitive rates to mitigate against interest rate volatility.

The warrants, when exercised, would enable the company to obtain additional proceeds to redeem the Islamic securities, to fund the working capital needs.

It added the'' proposed private placement would enable it to raise funds at an attractive and substantially lower cost as compared to bank financing.

No comments:

Post a Comment