Malaysia's Prestar to issue up to RM 120 million of commercial paper

By Reshmi Basu

New York, June 21 - Prestar Resources Bhd. will issue up to RM 120 million in securities under its proposed commercial paper program, upon receiving approval from Malaysia's Securities Commission.

The commercial paper program carries a tenor of up to seven years.

The program will be divided into two separate tranches of RM 70 million and RM 50 million. Prestar may issue maturities for either tranche between one to 12 months.

The proceeds raised from the initial issuance will be used to finance capital expenditures, working capital requirements, to pay down existing trade financing facilities of Prestar and its subsidiaries, and to refinance existing term loans and purchase facilities of Prestar and its subsidiaries.

Prestar said the proposed programs allows it access to the competitive private debt securities market and will help it reduce its cost of borrowings for its expansion.

RHB Sakura Merchant Bankers Bhd. is the lead arranger.

Prestar Resources, based in Selangor, Malaysia, is principally an investment holding company. Its subsidiary and associated companies are mainly engaged in the steel-related sector.

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