12
business
Tenaga to reduce exposure
to foreign currency debt
SUBANG JAYA: Tenaga Nasional
Bhd is looking at reducing its ex-
posure to foreign currency debt
and concentrate on domestic and
ringgit loans.
Its president and chief execu-
tive officer, Datuk Seri Che Khalib
Mohamad Noh, said Tenaga had
managed to reduce its exposure
to foreign currency loans over the
years.
“We have managed to stream-
SP Setia targets RM1.1 billion in sales
SHAH ALAM: Property developer SP
Setia Bhd is aiming for RM1.1 billion
in sales for the financial year ending
Oct 31, 2009 despite the currently
challenging economic situation.
It also expects to make RM100
million in sales in Vietnam for its
property project, Setia Eco Lake, to
be launched next month, managing
director and chief executive officer
Tan Sri Liew Kee Sim said yesterday.
To date, sales has already reached
line our foreign currency loan
to that of the US dollar and yen
only,” he told reporters at the
second Tenaga Nasional Bhd
Safety Seminar for Top Manage-
ment.
He said fluctuations in foreign
currency rates had a serious im-
pact on Tenaga’s profitability as
well as debt obligation.
According to Che Khalib,
Tenaga’s exposure to foreign cur-
almost RM500 million, he told a press
conference after the company’s an-
nual general meeting here.
He said its landed property in Viet-
nam has a gross development value of
RM2 billion over the next 10 years.
The group has nine ongoing projects
in Johor, Penang and Selangor.
Liew said the group made RM300
million of its sales over the past sev-
eral months from its 5/95 home loan
package. Under the package, property
rency loans at present amounts to
between RM12 and RM13 billion,
about half of its total loans.
He also said Tenaga is looking
at buying back its loans when
there is a good opportunity.
“If there is a good price offered
to us to purchase, we will do so,”
he said.
It was reported that Tenaga
recently repurchased US$165.3
million (RM603.35 million) of
buyers pay 5% upfront the purchase
price of the property they are buying
while the balance 95% is paid when
the property is completed.
“It is a very good success rate and
beyond our expectation,” Liew said.
On Bank Negara Malaysia’s deci-
sion to reduce the Overnight Policy
Rate (OPR) by 50 basis points to 2%
yesterday, he said that it is a good
move for the property sector.
“I think the property market will
nominal value debt papers and
planned more such action.
Che Khalib noted that the util-
ity company had to seek financing
in foreign currency debt papers
previously as the local market did
not have the capacity to provide
such funding.
“But now the local market
should be able to provide the
funding requirements of Tenaga,”
he said. – Bernama
come back very strongly”, he said.
Liew said the company, which
had a land bank size of 4,000 acres,
was also on the lookout for good
land or company with very good
landbank, although it was not mak-
ing any acquisition at the moment.
On its first high-end condo-
minium project, Liew said the Setia
Sky Residence in Kuala Lumpur City
Centre is expected to be launched in
April. – Bernama
theSun | THURSDAY FEBRUARY 26 2009
BSN targets RM200m from
micro finance business
KUALA LUMPUR: Bank Simpanan Nasional
(BSN) has targeted a RM200 million profit this
year from its micro-finance business, general
manager and chief executive officer Adinan
Maning said yesterday.
He said the bank had made RM16 million
in profits since it launched the micro-finance
business in 2007.
The bank is planning to open another 20
micro-finance business centres this year
to support the business, he told reporters
after opening the BSN Bandar Sri Permaisuri
branch in Cheras.
Last year, BSN set up 20 micro-finance
business centres.
The profit for the BSN group in 2007 was
RM269.591 million and at the bank level, it
amounted to RM282.815 million. – Bernama
Airline offers RM777 tickets
for return flights to Europe
KUALA LUMPUR: KLM Royal Dutch Airlines
is offering a one-day internet sale of RM777 on
return flights to selected European cities today.
In a statement yesterday, it said bookings
and full details of the promotion is on its
website www.klm.com.my
This offer is a follow-up to its Valentine’s Day
promotion, which customers were unable to en-
joy as its website experienced technical issues.
It also comes in conjunction with KLM’s
switch to the fuel efficient Boeing 777-200
and 777-300 aircraft on its Amsterdam-Kuala
Lumpur-Jakarta route from March 29.
“The special offer is a great way to allow
our customers to fly despite the current
economic uncertainties,” KLM and Air France
country manager Estee Ng said. – Bernama