YNH Property Bhd. Deferment of Perpetual Securities Coupon Payments
KUALA LUMPUR – YNH Property Bhd. (Bursa Malaysia: YNHPROP) announced that it has exercised its contractual right to defer the coupon payments scheduled for 30 January 2026 and 9 February 2026 under its perpetual securities issuance programme. The decision was communicated to the Facility Agent and Trustee on 23 January 2026, together with the required compliance certificates.
Background of the Perpetual Securities Programme
The programme was launched with a nominal value of up to RM750 million. Two tranches have been issued so far:
| Tranche | Nominal Value | Issue Date | Initial Coupon Rate |
|---|---|---|---|
| PZ200008 | RM263 million | 7 August 2019 | 6.85 % per annum |
| PZ190009 | RM87 million | 30 July 2020 | 6.85 % per annum |
Both tranches carry an initial coupon rate of 6.85 % per annum and are redeemable at YNH Property’s option at the end of five years after issuance and on each subsequent semi‑annual coupon payment date. The deferred coupons are cumulative and will continue to accrue until paid.
Rationale for the Deferral
YNH Property stated that the deferral is a feature of the perpetual securities structure and does not constitute an event of default. The group highlighted that the move is intended to preserve liquidity, support ongoing development projects, and meet other financial obligations. By deferring the coupon payments, the company aims to retain cash reserves and strengthen its balance sheet.
Impact on the Company
The deferral will affect the company’s cash outflows in the short term, potentially improving liquidity ratios. However, the cumulative nature of the deferred coupons means that the group will incur additional payments in the future. The company has indicated that it will continue to focus on its development activities and maintain financial flexibility.
Market Reaction
At the close on 21 January 2026, YNH Property’s share price was MYR 0.27, with a 52‑week high of MYR 0.52 and a 52‑week low of MYR 0.245. The market cap was MYR 142.83 million. The price‑earnings ratio was –2.15, reflecting the company’s ongoing investment focus and the impact of the deferral on earnings.
Conclusion
YNH Property Bhd. has strategically deferred the coupon payments on its perpetual securities to conserve cash and strengthen liquidity. The deferral aligns with the provisions of the Perpetual Securities Trust Deed and is not regarded as a default. The company will continue to monitor its cash position and development pipeline while managing the cumulative deferred payments.
