REG - Aseana Prop Ltd - Refinancing of Defaulted Medium Term Notes

Aseana PropertiesAnnouncement

24/06/2025 16:00

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RNS Number : 2331O  Aseana Properties Limited  24 June 2025

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
EU REGULATION 596/2014 AS IT FORMS PART OF DOMESTIC LAW IN THE UNITED KINGDOM
BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF
THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE
INFORMATION WILL BE CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

24 June 2025

 

ASEANA PROPERTIES LIMITED

("Aseana" or the "Company")

 

Refinancing of the Defaulted Silver Sparrow Bhd Medium Term Notes (the "SSB
MTN")

 

Aseana (LSE: ASPL), a property developer in Malaysia listed on the main market
of the London Stock Exchange, is pleased to announce that ICSD Ventures Sdn
Bhd ("ICSD"), a wholly owned subsidiary of Aseana, has successfully secured a
facility of up to 45.2 million Malaysian ringgit ("RM") from AmBank (M) Berhad
(the "New Facility").

 

The New Facility will be utilised by ICSD to settle the remaining outstanding
sum of the defaulted SSB MTN (principal, interest and other related costs) in
full (totalling RM39.9 million) and to fund the re-opening of the Sandakan
Hotel as well as for general working capital purposes.

 

As at 31 December 2024, the defaulted SSB MTN, which financed the Company's
Sandakan Hotel asset and the Sandakan Harbour Mall owned by ICSD, stood at
RM61 million (principal) with weighted average interest rate of 10.26% per
annum. Receivers & Managers (the "Receiver") was appointed to ICSD on 5
November 2024 vide a debenture giving the holder thereof a fixed and floating
charge over the present and future assets and properties of ICSD (as announced
by the Company on 6 November 2024).

 

Aseana has executed fundraising exercises via the issuance of shares to a
strategic shareholder and the disposal of treasury shares in February 2025 and
March 2025 respectively, collectively raising c.US$6.5 million for the
Company. The net proceeds have been predominantly utilised to partially repay
the outstanding amounts due on SSB MTN, reduced the outstanding principal to
c.RM37 million.

 

The New Facility has been put in place on more favourable financing terms than
the SSB MTN including at a significantly lower interest rate (anticipated to
be below 6% per annum) and up to 10 years of repayment period from the date of
first drawdown (inclusive of 12 months grace period).

 

The New Facility will be subject to security arrangements. This includes
AmBank holding a first legal charge over the Sandakan Hotel asset and the
Sandakan Harbour Mall as well as a first party debenture by way of a fixed and
floating charge over the assets of ICSD.

 

The New Facility contains standard representations, warranties, covenants and
events of default for a loan of its type.

 

The Board of Aseana expects that the New Facility will be drawn down by ICSD
by early July 2025 to settle the remaining outstanding sum of the defaulted
SSB MTN in full, following which the Company expects that the Receiver will be
discharged, thereby enabling the Company to regain full control of ICSD's
assets and operations.

 

This refinancing reinforces the Company's strategic priorities outlined
previously, including to critically raise funds and bank financing for
safeguarding ownership of its remaining assets to prevent destruction of value
from distressed or forced sale activities, and to enable Aseana to improve on
its current financial position.

 

The Company will provide further details to shareholders updating on the
refinancing at the appropriate time.

 

Enquiries:

 

 Aseana Properties Limited
 Leong Kheng Cheong                            kc.leong@aseanapropertieslimited.com

 Lim Tian Huat                                 thlim@aseanaplc.com

 Thong Kok Cheong                              kcthong@aseanaplc.com

 Allenby Capital Limited (Financial Adviser)   +44 (0) 20 3328 5656
 Nick Naylor / Nick Athanas / Ashur Joseph

 

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