DBHD able to unwind convertible debt
Focus Malaysia 08 Nov 2018 13:37
Damansara Realty Bhd (DBhd) expects its stronger balance sheet to anchor its group financing through commercial borrowings and internal funds with the end of its Redeemable Convertible Notes (RCN) programme.
The year 2018 has shown DBhd to systematically optimise and restructure its resources and offerings, after the group had streamlined its core businesses with the recent corporate exercises.
“We have returned to profitability and our balance sheet is not weighed down as before with the past financial issues,” said DBhd Group Managing Director, Ts. Brian Iskandar Zulkarim.
“DBhd has sharpened its focus for growth in our Integrated Facilities Management (IFM) division of which have yielded stable recurring income. Controlling operating cost and improving efficiency have improved our margins further,” he added.
With IFM’s contribution, DBhd has been able to moderate its dependence on its original core business of property development for sustained profitability as well as steering its capability to lean on its own financial stance.
Initially, the RCN programme which was approved in November 2017 was intended to raise up to RM150 million in four tranches over a 36-month period. As at to date, DBhd has only issued RM8 million in RCN and now DBhd has mutually agreed with the subscriber to repurchase the said issuance and to cancel the RCN programme.
*Ts. stands for the title of ‘Certified Professional Technologist’ awarded by the Malaysia Board of Technologists (MBOT).