Kuala lumpur: REDtone Digital Bhd has subscribed to RM13 million worth of medium-term notes (MTNs) issued by Berjaya Corporation Bhd's subsidiary, Berjaya IPS Equity Sdn Bhd. In a Bursa Malaysia filing today, REDtone Digital detailed that the subscription is part of an MTN programme with an aggregate size of up to RM500 million, featuring a fixed coupon rate of seven per cent per annum, payable on a semi-annual basis.

According to BERNAMA News Agency, the notes have an initial tenure of one year from the date of issuance, with an option to roll over up to 30 years. They are unrated, unsecured, and not listed on any exchange. REDtone sees the subscription as an opportunity to optimise the utilisation of its internal funds by investing in the MTN, which offers a higher rate of return of seven per cent per annum compared to conventional deposit placements.

Kenanga Investment Bank Bhd is serving as the principal adviser, lead arranger, lead manager, and facility agent for the MTN.