1. INTRODUCTION

The Board of Directors of GAB (“the Board”) is pleased to announce that GAB is proposing to issue CPs/MTNs with an aggregate nominal value of up to RM500,000,000.

2. DETAILS OF THE PROPOSED ISSUE

The principal terms of the Proposed CP/MTN Programme is set out in Appendix 1 attached hereto.

The Proposed CP/MTN Programme has been assigned a rating of AAA by RAM Rating Services Berhad.

3. RATIONALE FOR THE PROPOSED ISSUE AND PROPOSED UTILISATION OF PROCEEDS

The Proposed CP/MTN Programme will provide GAB with an alternative source of financing which will enable GAB to effectively plan and manage its funding costs and requirements.

The proceeds of the Proposed CP/MTN Programme shall be utilised for general corporate purposes including repayment of bank borrowings, if any.

4. EFFECTS OF THE PROPOSED CP/MTN PROGRAMME

4.1 Share capital and shareholdings structure

The Proposed CP/MTN Programme will not have any effect on the share capital and shareholding structure of GAB as no shares will be issued in conjunction with the Proposed CP/MTN Programme.

4.2  Net assets and earnings

The Proposed CP/MTN Programme is not expected to have any material effect on the net assets and earnings per share of GAB for the financial year ending 30 June 2012.

5. APPROVAL REQUIRED

An application was made to the Securities Commission (“SC”) on 25 November 2011 by way of the deemed approval process. The SC has granted its approval for the Proposed CP/MTN Programme on the same day. 

6. DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTERESTS

None of the Directors and/or substantial shareholders of GAB and/or persons connected to them have any interest, direct or indirect, in the Proposed CP/MTN Programme.

7. COMPLIANCE WITH THE SC’S POLICIES AND GUIDELINES ON THE OFFERING OF PRIVATE DEBT SECURITIES (“SC GUIDELINES”)

As far as the Board is aware, there is no departure from the SC Guidelines in respect of the Proposed CP/MTN Programme.

8. DIRECTORS’ RECOMMENDATION

The Board, having considered all aspects of the Proposed CP/MTN Programme, is of the opinion that the Proposed CP/MTN Programme is in the best interest of the Company.

9. ADVISER

Standard Chartered Bank Malaysia Berhad has been appointed as the principal adviser, lead arranger, lead manager and book runner for the Proposed CP/MTN Programme.

This announcement is dated 25 November 2011.