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KUALA LUMPUR (Jan 23): Mulpha International Bhd (KL:MULPHA) has subscribed to US$20 million (RM80.8 million) worth of bonds issued under Sun Hung Kai & Co (BVI) Ltd’s US$3 billion Guaranteed Medium Term Note (MTN) Programme.
In a filing with Bursa Malaysia on Thursday, the property developer and hospitality group said its wholly-owned subsidiary Mulpha Strategic Ltd (MSL) subscribed to the senior unsecured fixed rate notes, carrying a 6.75% annual coupon, for US$20 million.
Mulpha International said the issuer, Sun Hung Kai & Co (BVI) Ltd, is a wholly-owned subsidiary of Hong Kong-listed Sun Hung Kai & Co Ltd (SHK), set up specifically to issue notes under the programme and on-lend the proceeds to SHK and its subsidiaries.
The bonds are guaranteed unconditionally by SHK, according to Mulpha International.
Mulpha International said the subscription forms part of its treasury and liquidity management strategy, aimed at optimising returns on cash holdings through its bond portfolio.
The notes offer a higher return relative to the group’s current deposits with financial institutions, with an expected effective yield of about 9.2% based on 50% leverage, the bourse filing read.
The investment was funded equally through internal funds and debt financing.
Mulpha International’s cash and cash equivalent amounted to RM142.8 million. Meanwhile, the company’s "other investments" amounted to roughly RM613.2 million on its balance sheet as at end-September 2025.
Its long-term borrowings amounted to RM1.649 billion with short-term loans at RM583.83 million as at Sept 30, 2025.
Mulpha International expects the investment to generate positive cash flows and contribute to future earnings via coupon receipts. The notes have a three-year tenure and mature on Jan 22, 2029, with coupon payments due semi-annually on Jan 22 and July 22.
Shares in Mulpha International closed unchanged at RM2.92 on Thursday, valuing the group at RM908.64 million. The counter has gained 16.8% over the past one year.
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