I am an investor of WCE Holdings since 2014 and I hold significant portion of my assets in WCE. It is no coincidence that when its Annual Report is filed, I would take no time to go through them (especially the important portion).

This time, for 2017's Annual Report which was presented today, I noticed something new and significant which no one of us especially the minority shareholders do not know.


As some would know, West Coast Expressway has 3 forms of funding i.e. Government Support Loan, Commercial Loan and equity injection. That would be in the quantum as above i.e. RM2.4 billion (GSL), RM2.5 billion (commercial loan) and RM1.2 billion (equity).

While WCE has managed to secure the loans from the government earlier on in 2014 and all the debt financing by 2015, one of the component which it was supposed to raise is the equity portion.

It is also to be noted that the Redeemable Unsecured Murabahah Loan Stocks (RUMS) is issued for RM990 million and it appears that the profit rate is 10% - quite high for my liking. This is a 40 year instrument.


Also, would like to highlight that none of this instruments was mentioned either in the press or the AGM (which was held late August 2016) although the issuance was done on 12 Jul 2016.


One thing for sure though is that the equity portion for WCE could have already been resolved from this issuance as I am sure it is regarded as an equity component rather than debt component.