Quantum of the Bond maybe US$ 300m or US$ 110m (RM 450.3m) and the fixed rate might be 7.18% - May I know where you get this rate of 7.18%. Bank loan interest is definitely at least 1% -2% lower. Shouldn't it be wiser to get a bank loan instead of issue bond?
It is stated in the Report (Investor material Oct 21) posted on Hibiscus site - page F-12.
Yes, a bank loan might have lower interest, however, the terms might be too onerous. I think that the 7.18% indicated might be the top, maybe 5% would be fair since it is a US$ bond. Thus should interest be that low or lower, Hibiscus might then issue more to capture the low interest.
Also, a circular for the Bond was issued as per page F-3.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....