KUALA LUMPUR (Jan 23): Mulpha International Bhd has committed approximately RM80.8 million to a bond investment under Sun Hung Kai & Co’s US$3 billion Guaranteed Medium Term Note programme, as part of its broader treasury and liquidity management strategy.
The property development and hospitality group disclosed that its wholly owned subsidiary, Mulpha Strategic Ltd, subscribed to US$20 million worth of senior unsecured fixed-rate notes. The bonds carry an annual coupon of 6.75% and have a tenure of three years.
The notes were issued by Sun Hung Kai & Co (BVI) Ltd, a special-purpose vehicle established to raise funds under the MTN programme. Proceeds from the issuance are on-lent to the Hong Kong-listed Sun Hung Kai & Co Ltd and its subsidiaries, with the bonds fully and unconditionally guaranteed by the parent company.
Mulpha said the investment is aimed at enhancing returns on excess cash reserves, offering yields that are meaningfully higher than traditional bank deposits. Based on a 50% leverage assumption, the effective yield is estimated at approximately 9.2%, making it an attractive addition to the group’s bond portfolio.
Funding for the subscription was sourced equally from internal funds and external financing. As at the end of September 2025, Mulpha International reported cash and cash equivalents of RM142.8 million, alongside other investment assets amounting to around RM613.2 million.
The group continues to maintain a substantial balance sheet, with long-term borrowings of RM1.65 billion and short-term loans of RM583.8 million. Management expects the bond investment to deliver steady cash inflows and contribute positively to earnings through semi-annual coupon payments.
The notes mature on Jan 22, 2029, with coupon payments scheduled every January and July. Mulpha’s approach reflects disciplined capital management, which complements its longer-term focus on property development and asset optimisation, including commercial property in KL and strategic land holdings in Selangor that support future growth initiatives.
On the equity front, Mulpha International’s shares closed unchanged at RM2.92, valuing the group at approximately RM908.6 million. The stock has risen nearly 17% over the past year, reflecting steady investor confidence in the group’s diversified portfolio and capital allocation strategy.
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