REDtone Subscribes To RM13 Mln Berjaya Corporation Unit's MTNs

KUALA LUMPUR, June 29 (Bernama) -- REDtone Digital Bhd has subscribed to RM13 million worth of medium-term notes (MTNs) issued by Berjaya Corporation Bhd's subsidiary, Berjaya IPS Equity Sdn Bhd.

In a Bursa Malaysia filing today, REDtone Digital said the subscription forms part of an MTN programme with an aggregate size of up to RM500 million and carries a fixed coupon rate of seven per cent per annum, payable on a semi-annual basis.

“The notes have an initial tenure of one year from the date of issuance, with an option to roll over up to 30 years, and are unrated, unsecured and not listed on any exchange.

“The subscription provides REDtone with an opportunity to optimise the utilisation of its internal funds by investing in the MTN, which offers a higher rate of return of seven per cent per annum as compared to conventional deposit placements,” it said.

Kenanga Investment Bank Bhd is the principal adviser, lead arranger, lead manager and facility agent for the MTN.

-- BERNAMA