FGV defers RM1.5b bond issuance

Felda Global Ventures Holdings Bhd (FGV) will defer attempts to raise RM1.5 billion from the bond market, at least until next month. 

According to Edge Weekly, FGV acting chairperson Sulaiman Mahbob said the postponement was necessary due to uncertainties with the company's board composition.

"For a really big sukuk exercise, you need a sitting chairperson, CEO and CFO for the long term. 

"I think we need to wait another one month," said Sulaiman. 

He said FGV needed to raise the sum to refinance some of FGV's debts. 

According to the report, as at end-March, FGV had RM1.87 billion in cash, RM4.17 billion in liabilities and RM161.59 million in available-for-sale assets.

"(There is a) mismatch - working capital lines are being used for investments and so on, so we want to match long-term utilisation with long-term funding.

"We have operating money in place. We are also in the middle of selling our insurance stake in Affin. That will be quite substantial. We hope to get the money soon. It is now with Bank Negara Malaysia," he said.

Sulaiman was made FGV chairperson in mid-June, replacing Isa Samad, following what appeared to be an internal power struggle within the company's board. 

The crisis was sparked by the board's decision to suspend CEO Zakaria Arshad and CFO Ahmad Tifli Mohd Talha in early June.

It is unclear whether attempts to raise the RM1.5 billion was initiated during Isa's time.  - Mkini