MALAYSIA: Medini Iskandar Malaysia, the developer of one of Iskandar Malaysia’s flagship projects, has proposed to revise the principal terms and conditions for its RM1 billion (US$334 million) Islamic medium-term notes (IMTN) program.
The proposed amendments include an extension of the IMTN’s availability period and tenor. The developer will also have to provide further security for the program in the form of shares in its affiliate, Medini Development, in favor of CIMB Islamic, the primary subscriber of the papers. The debenture created by Medini Iskandar Malaysia over all its undertakings, goodwill, property, assets and rights has also been proposed to be released and discharged.
The profit rate of the notes has also been proposed to be revised to a variable rate based on the cost of funds and 1.4% per year subject to a ceiling profit rate of 10.75% per annum with effect on and after the 30th September. The development of this zone is undertaken by a public-private partnership involving Iskandar Investment, Global Capital & Development and Medini Central.
Medini Central is a special purpose vehicle majority-owned by Al-Nibras 2, a Labuan- based private fund company managed by Kuwait Finance House (Labuan).