KUALA LUMPUR (March 7): Waste management company Tex Cycle Technology (M) Bhd has subscribed to a perpetual medium-term note (MTN) with a nominal value of RM10 million.

In a filing with Bursa on Thursday, Tex Cycle said the perpetual MTN offers a fixed return of 7.5% per annum, providing a steady and predictable income stream through regular semi-annual interest payments until redemption.

The first call date is set for five years from the issue date, with the option for the company to step up the coupon rate by 1% per annum, cumulatively each year, capped at a maximum rate of 15% per annum.

Tex Cycle said that the subscription will be paid for in cash, funded through internally generated funds.

However, Tex Cycle did not disclose the issuers of the perpetual MTN.

In a separate filing, Chin Hin Group Bhd reported that the company has made the third issuance of its perpetual MTN, with a nominal value of RM10 million, as part of its RM500 million perpetual MTN programme.

The group filed the establishment of a perpetual MTN back on Dec 7, 2023, aiming to raise up to RM500 million, with the Securities Commission Malaysia (SC).

Notably, the second issuance of Chin Hin’s perpetual MTN programme was subscribed to by Tex Cycle on Feb 9, with the same return of 7.5% per annum.

Proceeds from this issuance will be allocated for Chin Hin’s capital expenditures and working capital needs while enabling it to refinance existing and future financing as well as cover costs and expenses associated with the programme.

At Thursday’s market close, Tex Cycle’s shares fell 1.5 sen or 2.0% to 72.5 sen, resulting in a market capitalisation of RM185.7 million.

Meanwhile, Chin Hin’s shares settled one sen or 0.3% higher at RM4.00, valuing the group at RM7.08 billion. 

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Chin Hin Group seeking to raise up to RM500m via perpetual MTN
Tex Cycle subscribes to Chin Hin's RM10 mil perpetual medium-term notes