WCT-Page 30 to ProxyForm (2.4MB).pdf - Announcements - Bursa ...

26. ISLAMIC SERIAL REDEEMABLE BONDS �"SUKUK"� cont’d
WCT Berhad (66538-K)
annual report 2011
The Company issued RM300 million of SUKUK on 26 March 2008 under the Islamic financial principles of Musyarakah
in 3 series and have tenures of 3, 4 and 5 years with 139,887,452 rights to allotment of warrants on bought deal
basis to the Primary Subscriber. All the SUKUK were issued in one lump sum at a discount to their nominal value and
redemption is at the nominal value of SUKUK.
Upon issuance, the Primary Subscriber detached the provisional rights to allotment of warrants and placed out only
the SUKUK to secondary investors. The Primary Subscriber or the Offerer offered the provisional rights to the allotment
of the warrants for sale to the existing shareholders of the Company on the basis of 1 provisional right allotment to 1
warrant for every 5 WCT shares held on at an offer price of RM0.25 per warrant.
The profit is 2% per annum and payable semi-annually in arrears commencing 6 months after the issue date. The yield
to maturity was in the range of 4.90% to 5.20%. The SUKUK are direct, unconditional, unsecured and unsubordinated.
27. ISLAMIC MEDIUM TERM NOTES �"IMTN"�
The IMTN are repayable as follows:
Group/Company
2011 2010
RM'000 RM'000
Not later than 1 year - 200,000
Later than 1 year and not later than 2 years 100,000 -
Later than 2 years and not later than 5 years - 100,000
The IMTN are constituted by a Trust Deed dated 2 April 2008.
100,000 300,000
The issuance of the IMTN Programme of up to RM300 million are under the financing principle of Musyarakah.
The IMTN Programme has a tenure of up to 7 years from the date of the first issuance. IMTN have maturity days of
more than 1 year and up to 7 years.
The IMTN may be non-profit bearing or bear profit at a rate determined at the point of issuance. IMTN's profit is
payable semi-annually in arrears from the date of issue of the IMTN with the last profit payment due on maturity
dates.
The IMTN contains a financial covenant to maintain a net gearing ratio of 1.75 times.
The terms of the Trust Deed prescribe that in the event of default, the outstanding amount of the IMTN and the profit
element next due will become immediately due and payable.
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NOTES TO THE FINANCIAL STATEMENTS
31 December 2011
cont’d