Top Glove’s inaugural exchangeable bonds priced at US$200m
KUALA LUMPUR: Top Glove Corp Bhd has priced its maiden exchangeable bonds in the principal amount of US$200 million (RM815 million) via subsidiary Top Glove Labuan Ltd.
Proceeds from the bonds will be used to refinance the group’s foreign currency borrowings.
The company said in a statement yesterday the bonds had a tenure of five years and would mature on March 1, 2024.
Top Glove said the bonds represented an important milestone in its 28-year history, being its inaugural offering in the international capital markets.
The bond offering came on the heels of the company’s inclusion in the FTSE Bursa Malaysia KLCI in December last year.
Top Glove executive chairman Tan Sri Dr Lim Wee Chai said raising funds via the issuance of exchangeable bonds would enable the company to refinance its loans at a lower interest rate.
“This helps us to enhance our working capital and strengthen our financial position.”
The corporate exercise marks the first exchangeable conventional bonds priced out of Malaysia after almost a decade.
The bond offering was priced through an accelerated bookbuilding process and well-received by investors across Asia and Europe.
The bonds include an exchange option which enables bondholders to exchange their bonds for the company’s shares at an initial exchange price of RM6.20 per share.
It is priced at a commendable exchange premium of 20 per cent with a coupon of two per cent per year.
Joint global coordinators and bookrunners for the bonds are BNP Paribas Securities (Asia) Ltd, CIMB Bank (L) Ltd and Citigroup Global Markets Ltd.