Selected Key Assignments

Listed Manufacturing Co (Islamic Structured Finance, 2006)

As Financial Adviser, we restructured the client’s RM320m Bai’ Bithaman Ajil Islamic Debt Securities (BaIDS) to successfully avoid a potential technical non-compliance.

The successful restructuring involved difficult negotiations with BaIDSholders with differing and at times opposing interests. It also involved assisting the client to exhaustively review all financial aspects of their operational policy such as capital expenditure procurement and interest rate risk management, to name a few.

The revised structure of the BaIDS was highly innovative as it involved new step-up coupons and buyback call options. These were achieved via our proprietary “hibah” (or gift) structure which is the first of its kind in Malaysia. Our innovative structure enabled restructuring to be done smoothly, without disrupting or re-doing the original “akad” (or contract) required under Islamic finance.

BinaFikir played a key role in mediating between various stakeholders such as equity holders, BaIDSholders, other lenders, rating agencies, suppliers, etc., to work out a favourable solution for all and procuring the relevant approvals for the introduction of the first “hibah” restructuring in Malaysia.