Sports Toto Bhd’s wholly owned subsidiary Magna Mahsuri Sdn Bhd has subscribed for RM25 million in Islamic medium-term notes (IMTN) issued by BGRB Venture Sdn Bhd, a subsidiary of Berjaya Property Bhd.
Sports Toto said Magna Mahsuri made the subscription on Aug 14 under BGRB Venture’s Sukuk Wakalah programme.
The IMTN carries a fixed profit rate of 7% per annum, with profit payments made semi-annually. The notes have a one-year tenure from their respective issuance date, with an option to roll over up to the maturity date of Aug 11, 2119.
The subscription was funded entirely through the Sports Toto group’s internally generated funds, with no liabilities, including contingent liabilities or guarantees, assumed by the group as a result of the investment.
Sports Toto said the investment would allow the group to optimise the utilisation of its internal funds by earning a fixed return of 7% per annum, which is higher than conventional deposit placement rates.
BGRB Venture, incorporated in 2020, is an investment holding company and a wholly owned subsidiary of Berjaya Hartanah Bhd, which in turn is wholly owned by Berjaya Property.
Berjaya Hartanah and its subsidiaries are principally involved in property investment, development, management, trading, construction, project management, as well as golf and recreation club operations.
The Sukuk Wakalah programme has an issue size of up to RM1 billion. BGRB Venture first issued the IMTN on Aug 12, 2020, and has so far issued RM557.45 million across 20 tranches.
The notes subscribed by Magna Mahsuri are unrated, unsecured and unlisted, with Berjaya Hartanah acting as guarantor.
