KUALA LUMPUR (Aug 21): Sports Toto Bhd (KL:SPTOTO) said on Thursday that it has subscribed for RM17 million worth of Islamic medium-term notes issued by Berjaya Yokohama Sdn Bhd.
Berjaya Yokohama is a wholly-owned subsidiary of Berjaya Group Bhd, which in turn is 100%-owned by Berjaya Corporation Bhd.
In a filing with Bursa Malaysia, Sports Toto said subscription for the notes was made through its wholly-owned subsidiary Magna Mahsuri Sdn Bhd.
The sukuk murabahah programme, which matures in October 2054, has an issue size of up to RM1 billion with the notes carrying a fixed profit rate of 7% per annum, payable semi-annually.
First issued in October 2024, each issuance under the programme has a minimum tenure of one year and may be rolled over until the maturity date. To date, Berjaya Yokohama has issued an aggregate principal amount of RM3.58 million.
The notes are unrated and unsecured, and Berjaya Group is the guarantor.
Sports Toto said the subscription provides the group with an opportunity to optimise the utilisation of its internal funds by investing in the sukuk, which offers a fixed and higher rate of return compared to conventional deposit placements,
As at end‑June, Sports Toto had deposits, cash and bank balances of RM610.71 million against total borrowings of RM1.42 billion.
The transaction is deemed to be a related-party transaction as Berjaya Corporation is a major shareholder of both Sports Toto and Berjaya Yokohama.
The group added that the subscription has no material impact on its net assets, earnings or gearing for the financial year ending June 30, 2027.
Kenanga Investment Bank Bhd is the principal adviser, shariah adviser, lead arranger, lead manager and facility agent for the IMTN.
Sports Toto reported a net profit of RM62.54 million for its fourth quarter ended June 30, 2026, up 55% from the same quarter last year. Revenue, however, fell 4.9% year‑on‑year to RM1.55 billion.
As at market close on Thursday, Sports Toto shares were up two sen or 1.48 at RM1.37, valuing the group at RM1.85 billion.