KUALA LUMPUR (July 29): Bursa Malaysia RAM Capital Sdn Bhd (BR Capital), a 51:49 joint venture (JV) between Bursa Malaysia Bhd (KL:BURSA) and RAM Holdings Bhd, said its platform has successfully facilitated the full subscription of the maiden issuance worth RM5 million by City Coin Technology Bhd.
The investment note, according to BR Capital, was fully subscribed shortly after going live on its debt fundraising and investing platform last Thursday.
The issuer City Coin Technology, a core unit of City Coin Holdings Sdn Bhd, is an integrated operator of self-service laundry outlets. The RM5 million Islamic investment note it issued has a tenure of two years and a profit rate of 7.65% per annum. The issuance is rated R4 by RAM Rating Services Bhd, indicating an “adequate safety for payment of financial obligations".
RAM Ratings uses a rating scale for the credit evaluation of investment notes on the BR Capital platform, ranging from R1 to R9, with R1 being the highest rating and R9 the lowest.
According to the fact sheet, the funds are to be used by the issuer for working capital, which includes, among others, payment of professional fees, operating and administrative expenses, payment of staff costs, payment of store rental/leases, and other related expenditures.
The proceeds raised will also be utilised for capital expenditure, including renovation costs of new outlets, purchase of outlet equipment and purchase of laundry equipment.
"We are excited to be the inaugural issuer on BR Capital platform," said City Coin founder and managing director Paul Ang in a statement on Monday. "Tapping the platform facilitates our fundraising towards business expansion, as well as enhances our corporate profile among the business and investor community," he added.
"We are pleased with the successful launch and fast, full subscription of the inaugural investment note on BR Capital," said Bursa Malaysia chief executive officer Datuk Muhammad Umar Swift, who is also the chairman of BR Capital. "The overwhelming response reflects investors’ trust and confidence in BR Capital and the attractiveness of the offering."
Second investment note on BR Capital in the works
Meanwhile, BR Capital is set to launch its second investment note campaign, dubbed 'Project Everest', issued by PEPS-JV (Melaka) Sdn Bhd, a wholly-owned subsidiary of EP Manufacturing Bhd (KL:EPMB), an automotive parts manufacturer listed on the Main Market of Bursa Malaysia.
The aim of the issuance is to raise up to RM10 million, which the company will utilise for general working capital purposes and to partially finance the capital expenditure for the construction and development of Phase 1 of a completely knocked-down manufacturing and vehicle assembly facility in Melaka.
The issuance, which is also an Islamic investment note, has a tenure of three years and an indicative profit rate of up to 7% per annum. It is rated R3 by RAM Ratings, indicating that it has an “adequate safety for payment of financial obligations”.
BR Capital received the approval-in-principle from the Securities Commission Malaysia (SC) in June last year to manage and operate a new debt fundraising platform. With the approval, BR Capital is registered as a recognised market operator under the SC’s guidelines on recognised markets.
This follows a shareholders’ agreement inked between Bursa and RAM in December 2022 to develop a new debt fundraising platform.
The alternative fund-raising platform was established to facilitate companies with fundraising needs of at least RM5 million and a minimum tenure of one year, to raise funds via the issuance of credit-rated investment notes.