Serba Dinamik has committed to resolve the bond coupon payment and has no intention of defaulting

KUALA LUMPUR (November 12): Serba Dinamik Holdings Bhd, which recently missed the coupon payment for one of its $ 300 million sukuk, has said it has no intention of defaulting and has gone committed to making payment before the end of the grace period.

In a statement, Serba Dinamik said the coupon payment due was approximately US $ 7 million (RM 29.15 million). Coupon payment for the 3-year sukuk denominated in US dollars was due on November 9.

However, Serba Dinamik did not specify the reason for missing the coupon payment.

“Serba Dinamik has engaged and sought advice from our legal counsel, as well as written to sukuk agents to inform sukuk holders of the exact amount owed.

“We would like to point out that under the terms of the agreement, Serba Dinamik has a period of 30 days from the due date of the non-payment to settle and pay the overdue coupon obligations before triggering any dissolution event (event of default), “the oil group said. and the gas service group said.

“The group ensures that Serba Dinamik undertakes to honor said payment, subject to receipt from our customers. We also proactively engage all stakeholders to provide timely updates and clarifications as needed.

“Serba Dinamik extends its guarantee that it does not intend to default on the payment of the coupon and is taking all necessary measures to remedy the problem within the allotted time,” he added.

The bond tranche will mature in six months on May 9, 2022.

Notably, the May 2022 sukuk contains cross-default clauses with another 200 million sukuk, which matures on March 12, 2025. Its other Islamic bond paper has an annual profit rate of 6.997%, which is also paid semi-annually.

On November 12, Fitch Ratings downgraded the long-term default rating of energy service provider Serba Dinamik Holdings Bhd to “C” instead of “CCC-”.

Fitch added that Serba Dinamik said he plans to pay off the coupon within the grace period with money collected from customers.

On November 10, Serba Dinamik reportedly lost his RM 2.42 million deposit for a proposed purchase of an eight-story office building in Putrajaya from AwanBiru Technology Bhd (Awantec) for RM24.2 million .

On August 21, S&P Global Ratings downgraded Serba Dinamik’s long-term foreign currency credit rating to “CCC” from “B-” to reflect the maturities of the company’s RM 1.7 billion debt down to in May 2022.

Serba Dinamik’s actions had been suspended from October 22, amid an ongoing dispute with Bursa Malaysia over the release of an update for the ongoing Special Independent Review of its finances.

Bursa Malaysia led the review in June this year, after Serba Dinamik’s external auditor, KPMG, reported audit issues involving transactions and counterparties amounting to more than RM3 billion.

The latter traded at 35 sen on October 22, valuing the group at RM 1.3 billion.


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Elaine R. Knight