KNM issues MTN of RM838m

PETALING JAYA: KNM Group Bhd's wholly-owned unit, Splendid Investments Ltd, is setting up a multicurrency medium-term note programme of an initial size of up to S$300 million (RM838.8 million).
The Labuan-incorporated Splendid Investments was formed to provide funding and treasury services for KNM and its subsidiaries that mainly manufactures oil and gas-related equipment.
KNM said the notes issued under the programme were unrated, would be unconditionally and irrevocably guaranteed by the company and might be listed on the Singapore Exchange or any other stock exchange(s).
Under the programme, Splendid Investments may from time to time issue notes in series or tranches, on a syndicated or non-syndicated basis, in Singapore dollars and/or any other currency as may be agreed between the issuer, KNM (the guarantor) and the relevant dealers of the particular series or tranche of notes.
Singapore Exchange Securities Trading Ltd (SGX-ST) has granted its approval in principle for Splendid Investments to offer the notes to be listed on its exchange.
Apart from SGX-ST's approval, the Programme may require approvals from such other exchanges if any of the Notes were to be issued and listed elsewhere.
In addition, Bank Negara has granted its approval for the guarantor to provide a financial guarantee of S$185 million (RM517.4 million) to the programme.
The approval from the central bank is subject to certain conditions, including that KNM must get its prior approval to utilise the remaining S$115 million proceeds of issuance from the programme; ensure that if the utilisation of such proceeds of issuance is for foreign investment, it will be for foreign direct investment only; and make payment to redeem the Notes issued pursuant to the Programme by using foreign currency fund of the Group only.
BNP Paribas, acting through its Singapore branch, has been appointed as the arranger and dealer of the programme.
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