This article first appeared in The Edge Malaysia Weekly on July 27, 2026 - August 2, 2026
YNH Property Bhd (KL:YNHPROP), whose debts amounted to RM406 million as at end-March, is finally facing a debt crunch.
Of the borrowings, RM170 million in Islamic debt is coming due next February. On top of that, the company has perpetual securities (perpetuals) amounting to RM345.92 million that it wants to redeem.
The property developer has deferred the coupon payments for its perpetuals to next January. This is the second time it has deferred the coupon payments on its perpetuals, with the first time being in January this year.
The perpetuals were issued in 2019 and 2020, and have a step-up after the fifth year. As YNH has not been able to redeem the papers at the end of the fifth year, the rate is now at 9.85% per annum, and will increase by 1% per annum up to a maximum of 15%.
To redeem the perpetuals and reduce its overall debt level, YNH is relying on the sale of a piece of land along Jalan Sultan Ismail, Kuala Lumpur, to a joint venture (JV) led by Chin Hin Group Property Bhd (KL:CHGP) for RM455 million. The proposed sale, which was announced earlier this month, will see YNH receiving RM409.48 million in cash and the rest in shares.
The proceeds should be enough to help YNH meet its debt obligations, which had amounted to an even higher RM1 billion in 2024.
The JV plans to finance the purchase of the YNH land through a shareholders’ advance of RM91 million and term loan of RM318.5 million.
Based on the latest announcements, Chin Hin Group Property is poised to end up with borrowings of RM403.26 million and a gearing of 0.74 times after it completes the purchase of the industrial land, which is nearing completion.
Proceeds from the land sale would cover the bulk of YNH’s debt obligations coming due early next year. But considering that Chin Hin Group Property needs to take on more debt to purchase the land, YNH’s fate depends very much on the former’s ability to secure more funding.
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