Top Glove subsidiary cancels RM40m Islamic bonds under RM3bn perpetual scheme

KUALA LUMPUR (April 27): Top Glove Corp Bhd’s wholly-owned subsidiary TG Excellence Bhd will cancel Islamic bonds worth RM40 million on Friday April 29 under the 3-year perpetual sukuk program billion RM in accordance with TG Excellence’s takeover transaction notification, according to bond facility agent Hong Leong Investment Bank Bhd (HLIB).

“Following a notification of a repurchase operation by the issuer (TG Excellence), we inform you, as agent of the facility, that the following shares will be canceled on April 29, 2022:

“Stock code PZ200004 [with a] nominal amount [of] RM40 million,” HLIB said in a filing on Bank Negara Malaysia’s Fully Automated Issuance/Tender System website on Tuesday.

HLIB, however, did not specify the term and annual profit rate of TG Excellence’s perpetual sukuk.

Top Glove said in a February 20, 2020 statement that the perpetual sukuk, which offers an annual profit rate of 3.95%, has no legal maturity date.

“The proceeds from the issuance will be used to reduce the Company’s borrowings and will also be used for capital expenditures, working capital and general corporate purposes,” Top Glove added.

At the midday break on Wednesday, Top Glove’s share price stabilized by three sen or 1.73% at RM1.70, valuing the company at around RM13.62 billion.

Top Glove has 8.01 billion shares outstanding, according to its latest quarterly financial report.

Garland K. Long