Proposed Establishment Of An Islamic Medium Term Notes Programme Of RM1,500.0 Million In Nominal Value Based On The Shariah Principle Of Murabahah (VIA TAWARRUQ ARRANGEMENT)

The Board of Tan Chong Motor Holdings Berhad (“TCMH” or the “Company”) is pleased to announce that the Company proposes to establish an Islamic medium term notes (“Sukuk Murabahah”) programme of RM1,500.0 million in nominal value based on the Shariah principle of Murabahah (via Tawarruq arrangement) (“Sukuk Murabahah Programme”).

The Sukuk Murabahah Programme shall have a tenure of thirty (30) years from the date of first issuance of Sukuk Murabahah under the Sukuk Murabahah Programme.

The proceeds from the issuance of the Sukuk Murabahah shall be utilised by TCMH and/or its subsidiaries for the following Shariah-compliant purposes:

(i) Capital expenditure;

(ii) Working capital requirements;

(iii) General corporate purposes;

(iv) Projects, investments and asset acquisitions that are being undertaken and/or to be undertaken in the future;

(v) Refinance and/or repay financing facilities including existing conventional borrowings; and/or

(vi) Defray all fees and expenses in relation to the establishment of the Sukuk Murabahah Programme.

We further wish to announce that the Sukuk Murabahah Programme has been lodged with the Securities Commission Malaysia (“SC”) on 21 December 2021 in accordance with the SC’s Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework (effective 15 June 2015).

RHB Investment Bank Berhad is the Principal Adviser and Lead Arranger for the Sukuk Murabahah Programme, as well as the Lead Manager for the first issuance under the Sukuk Murabahah Programme.

This announcement is dated 21 December 2021.

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