Posted by bankrupt > 2020-04-12 17:57 | Report Abuse

Evolve Mall sure bankrupt bec no business caused by MCO.

Posted by johnmasino > 2020-04-12 17:59 | Report Abuse

Thanks bro for this enlightening article. Cheers!

Posted by warrantKing > 2020-04-12 18:30 | Report Abuse

Bro , just my humble opinion .
Evolve mall is terrible , low tenancy rate ,no crowd ,and even toilet rosak also fews month no repair ....

Posted by newbie8080 > 2020-04-12 19:53 | Report Abuse

Rental deferment to non essentials biz is the right thing to do.
Rental discounts to essential biz will help as well.
Free parking throughout MCO period should be encouraged.
However, it is doubtful that the company has a strong financial capacity to pull this off unlike more established malls in Klang Valley.

Posted by VIN3133 > 2020-04-12 20:07 | Report Abuse

A timely article in this uncertain and difficult MCO period.Thumbs up !
Perseverance and patience is what we need in sailing through this difficult period .
Thank you bro.

Posted by Ayoyo > 2020-04-12 22:24 | Report Abuse

A surprisingly weak justifications from otherwise solid dk66 articles..my layman arguments...

1..a reduction in opr still means that loans and interest costs needed to be serviced.. So, at 400m borrowings at 4% pa, a back of the envelope calculation suggests jaks needs to produce revenue of at least 12mil just to service the interest costs alone.. Can they under current circumstances?

2. There is a structural issue with real estate and that is oversupply.. Do not listen to property gurus who'd tell you the best time to buy is now because the sector will bottom in 6 months and recover from there.. The glut in residential and commercial will take years to absorb

3. usd borrowing can end up a double edged sword - if economic situation deteriorates further, flight to safe haven currencies will return - did anyone forgot what brought the hakim Saad, teh soon Seng etc down to their knees during the Asian financial crisis - the depreciation of local currencies against usd... Do not overlook this aspect

4..only true if they start producing revenue which is still some months away.. If successfully commissioned, then these usd revenue can be a natural hedge against the usd borrowing

Posted by DK66 > 2020-04-12 23:02 | Report Abuse

Ayoyo, this article is not meant to promote Jaks. It serves to explain how the current situation is affecting Jaks. It listed out both pros and cons.

With respect to your questions;

1. Almost all Malaysian businesses will run into cash flow problems if covid19 stays longer than expected. That is why the government has set aside RM100 billion to assist businesses.

2. No comment as I m not a property expert. My article merely pointed out that inflation normally raises property prices.

3. I can't comment as your statement is too general. I can only see strong USD/RM is good for Jaks as far as its investment in JHDP is concerned.

4. Agreed

Thank you for your comments

-------------------
Ayoyo A surprisingly weak justifications from otherwise solid dk66 articles..my layman arguments...

1..a reduction in opr still means that loans and interest costs needed to be serviced.. So, at 400m borrowings at 4% pa, a back of the envelope calculation suggests jaks needs to produce revenue of at least 12mil just to service the interest costs alone.. Can they under current circumstances?

2. There is a structural issue with real estate and that is oversupply.. Do not listen to property gurus who'd tell you the best time to buy is now because the sector will bottom in 6 months and recover from there.. The glut in residential and commercial will take years to absorb

3. usd borrowing can end up a double edged sword - if economic situation deteriorates further, flight to safe haven currencies will return - did anyone forgot what brought the hakim Saad, teh soon Seng etc down to their knees during the Asian financial crisis - the depreciation of local currencies against usd... Do not overlook this aspect

4..only true if they start producing revenue which is still some months away.. If successfully commissioned, then these usd revenue can be a natural hedge against the usd borrowing
12/04/2020 10:24 PM

Posted by SarifahSelinder > 2020-04-13 08:26 | Report Abuse

Post MCO Sarifah kan bikin shopping kat friendly neighbourhood shopping mall yg ngam ngam yg not so crowded

Mcm Evolve Mall

No more crowded Mid Valley or Sunway Pyramid Mall for long long time

Closeby neighbourhood mall Evolve Mall kan benefit

Posted by sniper123 > 2020-04-13 10:02 | Report Abuse

suggestion: how about converting part of evolve mall into a quarantine ctr or something similar 2 dat????

Posted by DK66 > 2020-04-13 20:15 | Report Abuse

Those who find this article "shocking", you are welcome to drop a comment.

Posted by DK66 > 2020-04-16 11:58 | Report Abuse

Mong Duong II has taken advantage of the low interest regime to restructure its borrowings.

https://www.ifre.com/story/2173747/main-awards-winner-y7xqwk7n8c

Frontier Markets Issue: Mong Duong 2’s US$1.1bn refinancing
13 Dec 2019 12:00 IFR Asia Awards 2019 Daniel Stanton

New frontier

Asia’s debt markets reached another milestone in 2019 with the first international bond from a frontier market project.

AES-VCM Mong Duong Power (MDP), which operates the 1,120-megawatt coal-fired Mong Duong 2 plant in northern Vietnam, sold US$678.5m 9.8-year senior secured bonds through Mong Duong Finance Holdings. The bond amortises from the end of the fourth year and has a weighted average life of 6.9 years.

Alongside a US$485m syndicated loan, the deal refinanced MDP’s existing project debt at an attractive fixed coupon, improving returns for the sponsors and giving capital markets investors a rare chance to take exposure to Asian infrastructure.

There are relatively few project bonds in Asia, and there had been very little offshore supply from Vietnam to provide pricing benchmarks, with no sovereign issuance for the past five years. That meant a careful price discovery process was needed.

Pricing tightened from initial guidance of 5.625% area to final guidance of 5.25% area, plus or minus 12.5bp, before printing at 5.125%.

Even with that 50bp tightening, final orders were over US$2.75bn. The 144A/Reg S bond won over a diverse investor base, with the US taking 32% of the deal.

The project’s strong sponsor base undoubtedly helped win over investors. US power company AES ultimately owns 51% of MDP, South Korea’s Posco Energy 30% and sovereign wealth fund China Investment Corp 19%.

Still, as the first deal of its type from Vietnam, the issuer and bookrunners needed to convince investors of the strength of the guarantees and contracts associated with the bond.

MDP has a government guarantee on all payment obligations under a build-operate-transfer scheme, with the plant set to be transferred to the government after 25 years of operation. Its 25-year power purchase agreement with state-owned Vietnam Electricity runs until 2040, and state-owned miner Vinacomin has committed to supply coal to MDP at a regulated price for the life of the project.

To keep these protections in place and avoid lengthy renegotiations, proceeds from the bond and the new loan were used to buy MDP’s project loan from the existing lenders, rather than refinancing the existing loan.

There is a pledge of shares in MDF and security over its assets, but MDP itself does not guarantee the bond, as Vietnam places limits on the total dollar amount of debt that can be issued from the country.

Thanks to these structural features, the bonds earned ratings of Ba3/BB (Moody’s/Fitch), in line with the sovereign. Investors left satisfied, as the gained as much as half a point the following day, finishing IFR’s review period at 101.35.

Citigroup and HSBC led the refinancing as joint global coordinators on the bond and original mandated lead arrangers and bookrunners on the loan. SMBC and Standard Chartered were joint bookrunners and MLABs.