19. PERPETUAL SECURITIES In July 2017, a wholly owned subsidiary, Parkway Pantai Limited (“PPL”) established a US$2.0 billion Multicurrency Term Note Programme (“MTN programme”). In the same month, senior perpetual securities (“perpetual securities”) with an aggregate principal amount of US$500.0 million (equivalent to RM2.2 billion) were issued by PPL under the MTN programme. The perpetual securities bore an initial semi-annual distribution of 4.25% per annum which will be reset in July 2023 and at every 5 years thereafter. The salient features of the perpetual securities were as follows: (i) unrated and listed on the Singapore Stock Exchange; (ii) direct, unconditional, unsubordinated and unsecured obligations of PPL; (iii) no fixed redemption date but PPL had the option to redeem at the end of 5 years from date of issuance at their principal amounts and on each subsequent semi-annual periodic distribution payment date; (iv) may also be redeemed at the option of PPL upon the occurrence of certain events as detailed in the terms and conditions of offering circular and pricing supplement of the perpetual securities; (v) expected periodic distribution amount may be deferred by PPL and are cumulative, subject to the terms and conditions in the offering circular of the perpetual securities; and (vi) shall at all times rank pari passu and without any preference among the perpetual securities issued and (save for certain obligations required to be preferred by law) equally with all other unsecured obligations (other than subordinated obligations, if any) of PPL, from time to time outstanding. The issued perpetual securities were classified as equity as the payment of cumulative distribution or redemption of the securities were at the option of PPL. In 2022, coupon distributions amounting to RM52,212,000 were accrued to perpetual security holders, and coupon distributions amounting RM90,582,000 were paid to the perpetual security holders. On 27 July 2022, PPL completed the redemption of its US$500.0 million perpetual securities. Following the redemption, all the outstanding perpetual securities have been cancelled and delisted from the Singapore Stock Exchange. Annual Report 2023 179
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