1. INTRODUCTION
The Board of Directors
of K & N Kenanga Holdings Berhad ("KNKH" or the Issuer) is pleased to announce that KNKH had received approval/authorisation
from the Securities Commission (SC)
to establish a commercial paper/medium term note programme for the issuance of unrated
commercial papers (CPs) and/or unrated
medium term notes (MTNs) (the CPs
and the MTNs are collectively referred to as the Notes) of up to RM200.0 million in nominal value (CP/MTN Programme) via the SCs letter
dated 13 August 2014.
Kenanga Investment Bank Berhad has been mandated by the
Issuer as the sole Principal Adviser/ Lead Arranger and Facility Agent in
respect of the CP/MTN Programme.
2. DETAILS OF THE CP/MTN PROGRAMME
The CP/MTN Programme
shall have a tenure of up to seven (7) years from the date of the first
issuance of the Notes under the CP/MTN Programme. The CPs may be issued with a
tenure of one (1) month, two (2) months, three (3) months, six (6) months, nine
(9) months or twelve (12) months as Issuer may select whereas the MTNs can have
a tenure of more than one (1) year and up to seven (7) years, as Issuer may
select, provided always that the final maturities of the Notes shall not exceed
the tenure of the CP/MTN Programme.
The first issuance of the Notes under the CP/MTN Programme shall be made
within two (2) years from the date of the written approval/authorisation by the
SC subject to the conditions precedent for the CP/MTN Programme being complied
with.
The Notes to be issued
under the CP/MTN Programme shall be non-transferable and non-tradable and
therefore the Notes will not be required to be rated. The Notes shall be issued via
private placement.
3. UTILISATION OF THE PROCEEDS
The proceeds raised from the issuance of the
Notes shall be utilised for the following purposes:
a.
to utilise RM30,000 to fund the Trustees Reimbursement Account as
required under the SCs Trust Deed Guidelines;
b.
to repay existing borrowings (whether in whole or in part) of the Issuer
and/or its subsidiaries; and/or
c.
to finance the investment activities, capital expenditures, working
capital requirements and/or other general corporate purposes (including but not
limited to the fees and expenses related to the CP/MTN Programme) of the Issuer
and/or its subsidiaries.
This announcement is dated 14 August 2014.