Just my 2 sen thoughts. Happy Investing.

http://klse.i3investor.com/blogs/race/55769.jsp

To clarify, RCULS stands for Redeemable Convertible Unsecured Loan Stock.

It is a type of security that can be used to purchase underlying common shares. It is similar to a warrant except that it is subject to the conversion ratio. In essence, an RCULS provides the benefits of a bond until it is converted to an equity. If the loan stocks are redeemable, then on maturity the holder can either convert the RCULS into shares or redeem the RCULS from the issuing company at their par value. Upon conversion into shares, the Number of Shares Outstanding (NOSH) is increased. [source:investopedia]

In this case, redemption is based on Par Value which is fixed at 20sen. Note Par Value is different from Market Value or Net Asset Value.

The RCULS last traded at 86sen. Of course you could buy/sell in the market as long as it is traded. Question is would you buy an instrument trading at 86sen with risk of getting back just 20sen?

You could convert them into ordinary shares only after 1st year. As stated in the term IF NOT REDEEMED (at the option of the co.) , the RCULS shall be converted into ordinary shares at maturity.

The risk is Barakah decided to redeem it prior to maturity at 20sen upon coupon payment date after issuance(read the article).

Good question. None in Malaysia that I could think of. Unless you want to invest into AirAsia group of companies led by Tony who was once SEA VP for Warner Music Group. Happy Father's Day anyway.

Thanks for liking.