Posted by sotsot1986 > 2014-03-26 19:50 | Report Abuse

That might an opinion wish to share here, please don't criticize me.

About ELKDESA, 1st thing, this company is not register with BNM under either BAFIA or IBA. That means, this company can't take deposit from the public. In order to expand their capital to let out, the co. might to take the way by issue bond, commercial paper, loan stock or right issue to increase their capital.

Back to this Loan Stock, every year only pay back 3.25%. Honestly speaking, the rate is too low. Even 3 month KLIBOR now trade at 3.32% and one year FD at bank can get at range from 3.45% to 3.60%. So you may c the LR is not attractive enough.

You may argue the price loan stock will follow with mother share price when listing. But a question here, who willing buy from you at premium price and lock for two year with lower yield return.

My opinion is hold the mother share better than this LR. You might benefit from this 100m LR proceed (if fully subscribed). Let out at average 4% for 2nd hand car hire purchase with the cost of 3.25%.