KUALA LUMPUR (May 9): Main-Market listed Warisan TC Holdings Bhd (KL:WARISAN) has lodged a 30-year medium-term notes (MTN) programme worth RM500 million with the Securities Commission of Malaysia (SC).

The move is to raise funds for its capital expenditure, working capital requirements, projects, investments and asset acquisitions, as well as repayment of borrowings, the group told Bursa Malaysia.

The programme has a 30-year tenure from the date of the first issuance of MTNs under the programme. RHB Investment Bank Bhd has been appointed as the principal adviser, lead arranger and lead manager.

Warisan’s core business is rather diversified, comprising travel services, car rentals and distribution of construction equipment and machinery. It also distributes consumer products like Shiseido cosmetics and Wacoal lingerie.

On the financial front, Warisan has been reporting straight annual losses since the financial year ended Dec 31, 2019 (FY2019).

The group posted a narrow net loss of RM1.73 million in FY2023 from RM11.54 million a year earlier, boosted by its travel and rental division, coupled with higher profit margin as a result of its ongoing cost rationalisation efforts.

As at end-2023, Warisan had total borrowings of RM259.66 million, the majority of which were short-term loans (RM254.65 million). Cash and cash equivalents amounted to RM86.97 million, according to data from its annual report.

Warisan is a sister company of Tan Chong Motor Holdings Bhd (KL:TCHONG) which assembles and distributes Nissan and Renault marques.

Tan Heng Chew, president of both companies, holds 54.72% and 49.66% in Warisan and Tan Chong Motor, respectively, according to the companies’ annual reports.

Shares of Warisan closed down five sen or 4.76% at RM1, giving it a market capitalisation of RM67.2 million.