Published: Monday May 13, 2013 MYT 5:53:00 PM

Puncak Niaga to issue warrants, raise RM165m Sukuk

By Nadya Ngui

KUALA LUMPUR: Puncak Niaga Holdings Bhd (PNHB) is undertaking a corporate exercise to enhance its capital base by issuing free warrants and raising RM165mil from a Sukuk programme.

In its circular to shareholders on Monday, it said it was issuing up to 40.91 million warrants on the basis of one warrant for 10 shares.

PNHB is also undertaking a five-year redeemable convertible secured Sukuk of up to RM165mil in nominal value.

The proceeds to be raised from the exercise of the warrants would be used for working capital purposes.

The RM165mil raised from the Sukuk would be used to fund the acquired assets within a year after the receipt of the proceeds.

"In the event that no investment is made within 12 months of the Sukuk issue, the proceeds shall be advanced to repay its sub-sea infrastructure debt."

The group, which has borrowings of RM5.6bil, said it would be able to manage the potential interest rate fluctuation with the proposed Sukuk issuance.

PNHB also plans to further invest in its existing treated water business, wastewater and environment sectors as well as the oil and gas industry.

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