By Yasmin Ramlan
SHAH ALAM, Mar 5 — The state government has received RM17.125 million in interest payments from Worldwide Holdings Bhd for the RM150 million loan it issued to the conglomerate three years ago to finance the Pulau Indah Power Plant (PPIP) project.
Menteri Besar Dato’ Seri Amirudin Shari said these payments were for the February 2021 to August 2023 period, at an annual interest rate of 4.5 per cent, as per the agreement between the two parties.
“Based on our records, from February 17, 2021 to August 31, 2023, the loan to Worldwide Holdings has yielded a cumulative interest return of RM17,124,657.53, at a 4.5 per cent interest rate as outlined at the outset,” he told the State Legislative Assembly today.
He was responding to a question from Gombak Setia assemblyman Muhammad Hilman Idham regarding the terms of the RM150 million soft loan to Worldwide Holdings for the PIPP project and the expected returns.
However, Amirudin revealed today that the loan, which was issued for a five-year period with a maturity date of February 17, 2026, was converted into a redeemable non-convertible preference share (RNCPS) in September 2023.
This, he said, is to maximise the investment benefits for both parties.
Under the new arrangement, Amirudin said Worldwide Holdings is no longer required to constantly seek additional funds to make loan repayments, subsequently adding value to the company.
“Additionally, it positions the state’s heritage fund as an investment partner to Worldwide Holdings, rather than merely acting as a creditor or lending institution.”
The Menteri Besar said the new RNCPS agreement, which took effect beginning September last year for a three-year period, entails a dividend payment at a rate of 5 per cent annually for the first and second year ending August 2025.
For the third year, from September 2025 to March 2026, Worldwide Holdings is required to pay at a 7 per cent rate.
“The state will begin receiving dividends for the RNCPS subscription on March 31, 2024, in line with the subscription terms for annual dividend payments to be made on March 31 and September 30 of each year,” he said
