KUALA LUMPUR: Top Glove Corporation Bhd has completed the bonds issue for its maiden exchangeable bonds in the principal amount of US$200 million (RM814.1 million) on March 1, 2019.

Top Glove said the bonds were listed on Bursa Malaysia and SGX on March 4, 2019.

In a statement today, it said the purpose of exchangeable bonds issuance was to save bank interest by retiring existing borrowings and the net proceeds from the issuance would be mainly used mainly for the repayment of its existing debts.

 “The issuance of the bonds will not give rise to an increase in the company’s borrowings or gearing ratio. The bonds will result in potential cashflow savings of approximately RM16 million in interest per year,” it said.

Top Glove said the bonds were priced at 2.0 per cent per annum coupon for a fixed fiveyear period and the coupon was approximately 50 per cent lower than the existing interest cost of the loans the group intended to repay, which was a rate of approximately 4.0% per annum. — Bernama

The Sun Daily