KUALA LUMPUR: VS Industry Bhd has fully redeemed the first tranche of its Sukuk Wakalah programme amounting to RM200 million.
In a statement, the electronics manufacturing services provider said the sukuk, issued through its wholly owned unit VS Capital Management Sdn Bhd, matured today.
Managing director Datuk SY Gan said the redemption reflects the group’s strong financial discipline and liquidity management, as well as is expected to help lower interest expenses going forward.
“The group’s financial position remains healthy and resilient with very low net gearing position and high gross cash holdings of RM814.9 million as at end-April,” he said.
He added that while the operating environment remains challenging, the group’s operations are intact and its customer base stable, with progress continuing in the Philippines.
The Sukuk Wakalah was issued in September 2022 in two tranches.
Proceeds from the first tranche were used for working capital, capital expenditure and other corporate purposes, including refinancing borrowings and providing Islamic intercompany financing.
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