PNB has no plan to issue exchangeable bonds

Permodalan Nasional Berhad says any future borrowings will only apply to the company’s proprietary portfolio and will not involve its unit trust funds.

KUALA LUMPUR: Permodalan Nasional Berhad (PNB) today clarified that it has not approved or considered any exchangeable bond programme.

It said it would continue to assess and examine various means and methods to raise capital for domestic and global investment activities, including debt instruments such as term loans, sukuk and exchangeable bonds.

“Such existing or future borrowings, if undertaken, apply and will only apply to PNB’s proprietary portfolio and do not involve its unit trust funds, which are segregated and distinct from the proprietary fund of PNB.

“The operations and investments of the unit trust funds such as Amanah Saham Bumiputera and Amanah Saham Nasional are strictly regulated by the Securities Commission (SC).

“Under the rules of the SC, no unit trust fund manager, including PNB, is allowed to undertake any borrowings for the funds or encumber the assets under these funds for any purpose,” it said in a statement today.

PNB was responding to a report by Bloomberg yesterday quoting unnamed sources as saying the fund was mulling the first sale of exchangeable bonds to finance its overseas investments.

“Any speculation on this matter is unnecessary and concerns regarding the charging of our unit trust assets are unfounded.

“As the custodian to the wealth of millions of Malaysians, PNB is always guided by its mandate in all of the investment decisions that we make and is committed to the highest standards of probity and integrity,” it said.