By Jennifer Chiou
New York, Sept. 7 - Padiberas Nasional Bhd. announced that its board of directors authorized an up to RM 750 million Islamic commercial paper and medium-term note program, adding that the initial bought-deal issue of notes is sized at RM 400 million.
Notes may have a tenor of up to seven years, according to a company release. The first issue has a maturity of five years.
The company added that the sublimit of outstanding commercial paper will be RM 375 million.
On the fifth anniversary of the program, the available limit will drop to RM 500 million while the commercial paper limit will be RM 250 million. During the sixth year, the program limit will fall to RM 250 million and the commercial paper limit will stand at RM 125 million.
The notes will be issued at par.
The program received an initial rating of AA3 from RAM Rating Services Bhd.
Proceeds will go toward working capital requirements, future investments and the refinancing of the company's existing securities.
The Kuala Lumpur, Malaysia company is a rice industry regulator and distributor.
| Issuer: | Padiberas Nasional Bhd.
|
| Issue: | Islamic medium-term notes
|
| Amount: | RM 400 million
|
| Maturity: | Five years
|
| Price: | Par
|
| Settlement date: | Sept. 7
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