Valuecap Sdn Bhd-History of its RM 15 billion liability, 2/3rds due to mature in February 2009
Value Cap Sdn Bhd commenced operations in January 2003.Its capital base comprised RM 50 million in equity , provided equally by Khazanah Nasional Berhad,Permodalan Nasional Berhad and Majlis Kumpulan Wang Amanah Pencen and RM 9.95 billion in debt provided by the same shareholders in almost equal proportion.
Debt was in the form of bonds with a maturity of 3 years-for details of that issue see http://www.sc.com.my/SC/search_issuer.asp?stype=S&skey=V
The bonds were issued on 28-02-03.
They have a coupon rate of 3.5% per annum.
Readers will note from the documents that "Upon maturity, the Bonds shall
be renewable for up to three (3) years at the discretion of the Bondholders."
In February 2006, bondholders agreed to extend the term by another three years. As reported by Business Times Malaysia:
VALUECAP Sdn Bhd, the government-backed asset management company, had the maturity of its RM10 billion bonds extended, indicating that its operations may be continued for three more years.
The initial maturity date of the bonds is February 28 this year, with an option to extend for three years, according to an announcement filed by the arranger, AmMerchant Bank Bhd, on Bank Negara Malaysia's website.
"Bondholders have unanimously agreed to extend the tenure to February 28 2009," the announcement said.
The proposed variation to the terms and conditions of the bonds is now pending the Securities Commission's approval. Valuecap was set up by the Government in January 2003 to buy undervalued stocks on the domestic stock exchange to help restore investor confidence at a time when sentiment was low. Equally owned by Khazanah Nasional Bhd, Permodalan Nasional Bhd and Kumpulan Wang Amanah Pencen, Valuecap was tasked with providing volume and liquidity to the stock market besides creating a vibrant and active market. Amid a looming war in Iraq at that time, the fund was essentially set up to buffer the stock market against any sharp falls due to any possible widespread fallout from the situation.
In 2003 and 2004, Valuecap generated returns of 27.7 per cent and 17.7 per cent respectively, doing better than the Kuala Lumpur Composite Index, which gained 22.8 per cent and 14.2 per cent respectively during both years.
(Maturity of ValueCap bonds extended
25 February 2006
Business Times)
The additional loan from the EPF will therefore increase Valuecap's total liability to RM 15 billion (http://malaysia.news.yahoo.com/bnm/20081021/tbs-normohamed-epf-ceeeaba.html)
It is therefor unclear what Nor Mohamad meant when he said recently: "The RM5 billion is a reasonable sum which is an addition to RM5 billion that Valuecap already has." (http://www.bernama.com.my/bernama/v3/news_lite.php?id=366337)
Readers will recall that Valuecap's paid-up capital is only RM 50 million. Given the recent market meltdown, it is difficult to see that Valuecap would have built-up its equity position to RM 5 billion.
Debt was in the form of bonds with a maturity of 3 years-for details of that issue see http://www.sc.com.my/SC/search_issuer.asp?stype=S&skey=V
The bonds were issued on 28-02-03.
They have a coupon rate of 3.5% per annum.
Readers will note from the documents that "Upon maturity, the Bonds shall
be renewable for up to three (3) years at the discretion of the Bondholders."
In February 2006, bondholders agreed to extend the term by another three years. As reported by Business Times Malaysia:
VALUECAP Sdn Bhd, the government-backed asset management company, had the maturity of its RM10 billion bonds extended, indicating that its operations may be continued for three more years.
The initial maturity date of the bonds is February 28 this year, with an option to extend for three years, according to an announcement filed by the arranger, AmMerchant Bank Bhd, on Bank Negara Malaysia's website.
"Bondholders have unanimously agreed to extend the tenure to February 28 2009," the announcement said.
The proposed variation to the terms and conditions of the bonds is now pending the Securities Commission's approval. Valuecap was set up by the Government in January 2003 to buy undervalued stocks on the domestic stock exchange to help restore investor confidence at a time when sentiment was low. Equally owned by Khazanah Nasional Bhd, Permodalan Nasional Bhd and Kumpulan Wang Amanah Pencen, Valuecap was tasked with providing volume and liquidity to the stock market besides creating a vibrant and active market. Amid a looming war in Iraq at that time, the fund was essentially set up to buffer the stock market against any sharp falls due to any possible widespread fallout from the situation.
In 2003 and 2004, Valuecap generated returns of 27.7 per cent and 17.7 per cent respectively, doing better than the Kuala Lumpur Composite Index, which gained 22.8 per cent and 14.2 per cent respectively during both years.
(Maturity of ValueCap bonds extended
25 February 2006
Business Times)
The additional loan from the EPF will therefore increase Valuecap's total liability to RM 15 billion (http://malaysia.news.yahoo.com/bnm/20081021/tbs-normohamed-epf-ceeeaba.html)
It is therefor unclear what Nor Mohamad meant when he said recently: "The RM5 billion is a reasonable sum which is an addition to RM5 billion that Valuecap already has." (http://www.bernama.com.my/bernama/v3/news_lite.php?id=366337)
Readers will recall that Valuecap's paid-up capital is only RM 50 million. Given the recent market meltdown, it is difficult to see that Valuecap would have built-up its equity position to RM 5 billion.
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