Malaysia: Cahya Mata Sarawak to raise MYR1bn for capex

Cahya Mata Sarawak Bhd (CMS) plans to raise MYR1bn (US$255.9m) in syariah-compliant fund for its capital expenditure (capex) requirements and working capital.

According to Group Chairman, Tan Sri Syed Anwar Jamalullail, the Sarawak conglomerate expects to undertake a proposed sukuk programme of up to MYR1bn in nominal value for a period of up to 20 years.

This proposed sukuk programme will help fund CMS' working capital and capital expenditure requirements as well as offset general corporate expenses, reports Kuwait News Agency (Kuma).

By having substantial cash reserves, strong positive cashflow and access to long-term debt funding through the planned sukuk in this challenging economic climate, CMS has the flexibility to more easily capitalise on attractive investment opportunities which may arise from time to time, Syed Anwar said in a statement in the company's 2015 annual report.

He said due to acquisitions and investment in major projects, the company's level of cash and cash equivalents was reduced to MYR323m in FY15 from MYR804.68m in FY14.

Syed Anwar said the company had invested higher-than-normal capex in its new cement grinding plant project near here and the 175-room Samalaju Resort Hotel.