Sports Toto unit subscribes to RM12mil Berjaya IPS medium-term notes

KUALA LUMPUR: Sports Toto Bhd's (SPToto) wholly owned subsidiary, Magna Mahsuri Sdn Bhd (MMSB), has subscribed to RM12mil worth of medium-term notes (MTN) issued by Berjaya IPS Equity Sdn Bhd (BIPS Equity), a wholly owned unit of Berjaya Corp Bhd (BCorp).

In a Bursa Malaysia filing, SPToto said the subscription forms part of the eighth tranche of BIPS Equity's RM500mil MTN programme.

The tranche has an issuance size of RM25mil, of which MMSB subscribed RM12mil.

The MTN carries a fixed coupon rate of 7% per annum, with semi-annual interest payments and a one-year tenure that can be rolled over for up to 30 years. The notes are unrated, unsecured and guaranteed by Berjaya Capital Bhd.

Kenanga Investment Bank Bhd is the principal adviser, lead arranger, lead manager and facility agent for the MTN.

SPToto said the investment was funded through internal funds.

“The subscription provides the SPToto Group with an opportunity to optimise the utilisation of its internal funds by investing in the MTN, which offers a higher rate of return of 7% per annum as compared to conventional deposit placements,” SPToto said.

As the transaction involves a related party, SPToto noted that BCorp is a major shareholder of both SPToto and BIPS Equity.

Chairman and executive director Datuk Seri Robin Tan Yeong Ching, as well as chief executive officer Nerine Tan Sheik Ping, abstained from deliberations and voting on the transaction due to their interests.