Chin Hin Group Property Introduces RM500 Million Perpetual Notes Programme

Chin Hin Group Property Bhd: RM500 Million Perpetual Notes Programme to Drive Growth

Chin Hin Group Property Bhd (KL), a key player in Malaysia’s property development sector, has announced a significant financial initiative: a RM500 million perpetual notes programme. This move marks a strategic effort to enhance the company’s financial flexibility and support its long-term growth objectives.

The programme was officially lodged with the Securities Commission Malaysia (SC) under the Lodge and Launch Framework (SC LOLA). In a filing with Bursa Malaysia, Chin Hin outlined the utilisation of funds and the strategic benefits of the programme.

What Are Perpetual Notes?

Perpetual notes, or perpetual bonds, are financial instruments with no fixed maturity date. They allow companies to raise long-term funds without the pressure of repayment schedules typically associated with conventional loans or bonds.

For Chin Hin Group Property, this programme provides an innovative financing option that strengthens its capital structure while offering flexibility to allocate resources effectively.

Strategic Allocation of Funds

Chin Hin Group Property plans to allocate the proceeds from the perpetual notes to several critical areas:

1. Capital Expenditures
   Funds will be channelled into developing and enhancing new and existing projects, ensuring the company maintains its competitive edge in the market.
2. Refinancing and Debt Management
   The programme enables Chin Hin to optimise its financial structure by refinancing existing borrowings, reducing overall financing costs, and improving cash flow.
3. Working Capital
   Supporting daily operations and ensuring efficient project execution are key objectives for utilising the funds.
4. General Corporate Purposes
   The company also plans to allocate resources to broader corporate initiatives and operational needs.
5. Cost and Expense Coverage
   A portion of the proceeds will be used to cover fees, costs, and expenses related to the programme’s establishment, including a RM100,000 deposit into the trustee’s reimbursement account.

United Overseas Bank’s Role

Chin Hin Group Property has partnered with United Overseas Bank (Malaysia) Bhd (UOB) for this programme. UOB will serve as the principal adviser, lead arranger, lead manager, and facility agent, ensuring the seamless execution of the perpetual notes programme.

This collaboration reflects Chin Hin’s commitment to working with trusted financial institutions to optimise its financing strategies.

Strengthening Financial Resilience

The introduction of this perpetual notes programme underpins Chin Hin Group Property’s broader strategy of financial resilience. By securing this innovative funding mechanism, the company is better positioned to adapt to market demands, seize growth opportunities, and mitigate potential risks associated with economic uncertainties.

The Impact on Investors

This move is expected to bolster investor confidence, given the company’s proactive approach to financial planning and its track record of delivering high-quality property developments. The perpetual notes programme represents a commitment to sustainable growth and operational excellence.

Conclusion: A Step Towards Sustainable Growth

Chin Hin Group Property’s RM500 million perpetual notes programme highlights its strategic focus on long-term growth and financial stability. By allocating funds across key areas such as capital expenditures, working capital, and debt refinancing, the company is well-equipped to sustain its competitive position in Malaysia’s real estate market.