Kuala Lumpur, 6 November 2014 – Maybank Investment Bank Berhad (“Maybank IB”) is issuing eight new European style cash-settled call warrants (“CW”) over ordinary shares of BIMB Holdings Berhad (“BIMB”), Eastern & Oriental Berhad (“E&O”), Gamuda Berhad (“GAMUDA”), Malaysian Resources Corporation Berhad (“MRCB”), MMC Corporation Berhad (“MMCCORP”), Sunway Berhad (“SUNWAY”), UEM Sunrise Berhad (“UEMS”) and UOA Development Berhad (“UOADEV”). The warrants will be listed on Friday, 7 November 2014 with an issue size of 100 million each.
This tranche focuses on the construction and property sectors which may benefit from Budget 2015 which was announced on 10 October 2014. The Malaysian government had announced the implementation of seven infrastructure projects with estimated cost totaling RM48.25 billion. Inaddition, home ownership projects will continue to be implemented to build up to 143,000 new affordable homes through PR1MA, JPN and SPNB. These initiatives by the government should benefit the construction and property sectors directly and the banks that finance these sectors indirectly. As such, sophisticated investors with a bullish view on the construction and property sectors may capitalize on this opportunity to gain exposure in these sectors.
GAMUDA and MMCCORP had announced on 29 October 2014 that they had been appointed as the Project Delivery Partner (PDP) for Line 2 (Sungai Buloh – Serdang – Putrajaya) of the Klang Valley MRT project with an estimated cost of RM23 billion.
The call warrants have the following gearings, BIMB-CS (5.63x), E&O-CV (3.51x), GAMUDA-C15 (4.09x), MRCB-CZ (4.90x), MMCCORP-CV (3.27x), SUNWAY-CM (4.43x), UEMS-C10 (3.89x) and UOADEV-CQ (4.87x). The tenure of all eight CWs is approximately 12 months.
The terms and conditions of the above call warrants are stated in their respective term sheets and investors should read the term sheets together with the Base Prospectus dated 2 October 2014.