Aeon Credit said opting for perpetual notes or sukuk issue
Aeon Credit Service, which has been deliberating on a cash-raising exercise to beef up its capital adequacy ratio (CAR), is said to have chosen the route for a perpetual notes or sukuk issue instead of equity. Analysts are expecting the proposed perpetual notes or sukuk, which is subject to the authority's approval, to be announced soon given the non-bank financial institution's 16.3% CAR as of Aug 20, 2013 is nearing Bank Negara Malaysia's minimum requirement of 16%. Aeon Credit could raise some RM190 million from the proposed exercise to increase its CAR to 22% based on its shareholders funds. No significant dilution on Aeon Credit's earnings per share is expected. Aeon Credit's D/E ratio surged to 5.67 times as of Aug 20, 2013 from 4.6 times as of May 20, 2013.
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