KUALA LUMPUR (Dec 6): JAKS Resources Bhd (KL:JAKS) said its indirect subsidiary MNH Global Assets Management Sdn Bhd has filed for the establishment of a medium-term note (MTN) programme of up to RM250 million with the Securities Commission Malaysia.

MNH Global is involved in the investment holding and management of malls, JAKS' latest annual report showed.  

In a bourse filing on Friday, the group said the proceeds raised from the MTN issuance shall be used to refinance MNH Global’s existing financing.

The funds raised will also be used as capital expenditure towards managing properties such as the Evolve Concept Mall and Pacific 63 commercial lots, as well as other properties to be identified.

Evolve Concept Mall is a four-storey shopping mall in Ara Damansara. The mall has a net lettable area (NLA) of 368,000 sq ft, and its occupany rate stood at 75.4%.

Meanwhile, Pacific Towers Business Hub is a four-storey retail and office lots building in Section 13, Petaling Jaya. It has an NLA of 295,000 sq ft, and its occupancy rate stood at 54%.

On top of that, JAKS also plans to utilise the proceeds to fund working capital requirements for MNH Global, and to repay inter-company loans and shareholders’ advances.

JAKS’s total borrowings totalled RM474.07 million as at end-September, with the bulk or RM409.13 million being long-term borowings.

On the other hand, the group had cash and cash equivalents of RM3.98 million, a 79.5% decrease from RM19.39 million a year ago.  

Public Investment Bank Bhd is the principal adviser, lead arranger and lead manager for the MTN programme.

At the noon break on Friday, JAKS’ share price was unchanged at 13 sen, bringing the group a market capitalisation of RM339 million. Year to date, the stock has fallen 30%.