Thursday, Feb 24, 2005
MARC has assigned ratings of A+ID on Intelbest Sdn Bhd’s (“ISB”) RM20 million Series 1 BaIDS, AID on RM35 million Series 2 and RM55 million Series 3 BaIDS and MARC-1ID on its RM50 million MUNIF. The ratings reflect the strength of the issue structure, which includes the assignment of the redemption sum and progress billings of locked in sales and future sales for the purpose of the redemption of the MUNIF and BaIDS facility; the secured sales represent 61% of the assigned developments; and the favourable locations of the developments. The enhanced A+ID and MARC-1 ratings assigned reflect the priority of application of proceeds which ranks the MUNIF and Series 1 above Series 2 and 3; supported by the cash security by way of collectible redemption sum which provides 61% coverage to the issues. The ratings are nevertheless moderated by the company’s vulnerability to adverse developments in the property markets and the construction industry.
ISB is principally an investment holding company and property developer with subsidiaries involved in property development in the Klang Valley such as Saujana Putra, Ukay Bistari and Lestari Perdana. The strategic locations of these developments is evident from the good take up rates of around 91.3% (average take up rates for launched phases).
Under the issue structure, sales receivables for launched phases of Ukay Bistari, Lestari Perdana and Saujana Putra together with future progress billings from the unsold and unlaunched units of the developments have been identified as the main source of repayment of the MUNIF and BaIDS. As at August 2004, the expected total GDV is RM702.67 million of which RM477.97 million have been launched and RM449.99 million sold. The secured sales represent 61% of the expected total GDV. Future sales would be sustained by the remaining unlaunched phases, totalling RM223.79 million under the Saujana Putra and Lestari Perdana developments. These are to be progressively launched within the next two years and are expected to achieve good take-up rates in view of strong historical take-up rates and good location. As a condition under the issue structure, total receivables from the group sales under the assigned phases must be at least 2.00 times of the MUNIF and BaIDS outstanding.
The amount drawn down from the facility is expected to be more than sufficient to carry out the construction works. Upon completion of the first 15-20% stage of completion, the billings received will be credited straight into the Redemption Account. As at August 2004, the redemption amount to be received stood at RM42.84 million and is growing as more properties are being sold and letters of disclaimers are issued. This can be viewed as cash protection to the MUNIF and Series 1, providing about 61% coverage to the issues. The MUNIF and Series 1 are only exposed to 20% or less as construction works are currently progressing well and are expected to reach that stage of completion within a year. The priority application of proceeds which rank the payment of MUNIF and Series 1 of BaIDS ahead of Series 2 & 3 of the BaIDS, gives added security to the noteholders of the MUNIF and Series 1.
ISB is principally an investment holding company and property developer with subsidiaries involved in property development in the Klang Valley such as Saujana Putra, Ukay Bistari and Lestari Perdana. The strategic locations of these developments is evident from the good take up rates of around 91.3% (average take up rates for launched phases).
Under the issue structure, sales receivables for launched phases of Ukay Bistari, Lestari Perdana and Saujana Putra together with future progress billings from the unsold and unlaunched units of the developments have been identified as the main source of repayment of the MUNIF and BaIDS. As at August 2004, the expected total GDV is RM702.67 million of which RM477.97 million have been launched and RM449.99 million sold. The secured sales represent 61% of the expected total GDV. Future sales would be sustained by the remaining unlaunched phases, totalling RM223.79 million under the Saujana Putra and Lestari Perdana developments. These are to be progressively launched within the next two years and are expected to achieve good take-up rates in view of strong historical take-up rates and good location. As a condition under the issue structure, total receivables from the group sales under the assigned phases must be at least 2.00 times of the MUNIF and BaIDS outstanding.
The amount drawn down from the facility is expected to be more than sufficient to carry out the construction works. Upon completion of the first 15-20% stage of completion, the billings received will be credited straight into the Redemption Account. As at August 2004, the redemption amount to be received stood at RM42.84 million and is growing as more properties are being sold and letters of disclaimers are issued. This can be viewed as cash protection to the MUNIF and Series 1, providing about 61% coverage to the issues. The MUNIF and Series 1 are only exposed to 20% or less as construction works are currently progressing well and are expected to reach that stage of completion within a year. The priority application of proceeds which rank the payment of MUNIF and Series 1 of BaIDS ahead of Series 2 & 3 of the BaIDS, gives added security to the noteholders of the MUNIF and Series 1.