Directors - Boustead Holdings Berhad

Notes to the Financial Statements
30. LONG TERM BORROWINGS (cont’d.)
124
The RCBs which were issued on a conventional basis have a nominal value of RM80 million with a tenure
of 5 years from the issue date. The RCBs may be converted at the option of the holder, at the conversion
price of RM4.13 per share into a maximum of 19,370,460 new BProp shares at any time after issuance
to the maturity date. BProp may redeem all but not part of the RCBs at any time on or after the expiry
of 21/2 years from the issue date at an accreted value which is subject to a 130% trigger (30% above
the conversion price). At maturity, the RCBs shall be redeemed at approximately 127% of the issue price.
The RCBs carry a coupon rate of 4% per annum which is payable semi-annually in arrears.
The Serial Bonds which were issued by the Company at a nominal value of RM250 million carry a rating
of AAA(bg). The Serial Bonds were issued in four series with tenures ranging from 4 years to 7 years,
and bear interest at annual interest rates ranging from 5.2% to 5.9% which is payable semi-annually in
arrears.
The BGRCB which were issued by the Company at a nominal value of RM100 million carry a rating of
AAA/s. The BGRCB has a tenure of 7 years and carries a coupon of 4.5% per annum which is payable
semi-annually in arrears.
The BGRCB may be converted into shares (Boustead Shares) of Boustead Holdings Berhad, at the option
of the holder, based on a conversion price of RM1.95 per share into a maximum of 51,282,051 new
Boustead Shares at any time commencing from the issue date to the maturity date. The Company may
redeem all but not part of the BGRCB at any time on or after the expiry of 3 years from the issue date
at an accreted value, subject to the market price of the existing Boustead Shares traded on Bursa
Malaysia being at least 130% of the conversion price. The BGRCB that remain outstanding upon maturity
in August 2011 shall be redeemed at 120% of the nominal value. The new Boustead Shares to be allotted
and issued upon conversion of the BGRCB will rank pari passu in all respects with the existing ordinary
shares of the Company other than as may be specified in a resolution approving the distribution of
dividends prior to its conversion.