Malaysia's KNM Group to issue up to RM 300 million under CP/MTN program

By Reshmi Basu

New York, Sept. 18 - Kuala Lumpur, Malaysia-based KNM Group Bhd. said that its subsidiary, KNM Capital Sdn. Bhd., plans to establish an Islamic commercial paper and medium-term note program to raise up to RM 300 million.

Additionally, the program will bear a tenor of up to seven years while the issuance of commercial papers will not exceed RM 150 million.

Proceeds will be used to redeem KNM's remaining Murabahah notes under its current Islamic notes facility, to fund expansion of plants in China and for capital expenditure requirements.

KNM Group is an investment holding company whose subsidiaries are involved in integrated systems design and engineering, international procurement, manufacture of process equipments for the oil, gas and petrochemical industries.

KNM Capital is KNM's financial hub for the centralizing of all funding activities.

Aseambankers Malaysia Bhd. and AmMerchant Bank Bhd. are lead managers.

The Malaysian Securities Commission has approved the proposal, according to the statement.

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