HAISAN Resources Bhd plans to sell RM30 million bonds to raise funds as working capital and reduce its debts. The 5-year redeemable bonds will carry a coupon rate of 6 per cent per annum payable semi-annually in arrears. It said in a statement that the proposed bonds issue allows Haisan Resources to take advantage of the current low interest rate environment to fix its interest cost for the five-year period.
It said the proposed bonds is not expected to have any material effect on the company’s share capital, net tangible assets and earnings.
However, it is set to increase the borrowings of the Haisan group as only part of the proceeds will be used to redeem the existing borrowings of the group.
Public Merchant Bank Bhd has been appointed the adviser for the proposed bond issue which is subjected to the Securities Commission’s approval.
Malaysian Ratings Corp Bhd has accorded an indicative rating of A (A flat) to the bonds.