chairman’s statement
to shareholders
Parallel to that, there is a growing need
for healthcare service providers to cater
to new niches within the industry. One
growing area is senior living care to
meet the needs of the nation’s ageing
society. KPJ has pro-actively undertaken
measures to commence offering services
in this area, through our investments in
specialised centers for older residents.
Another high-potential niche which KPJ
is actively promoting is health tourism,
which is one of the Group’s top five
income earners. The move to reach out
to markets beyond our own shores has
led to KPJ hospitals and medical
consultants being increasingly known
abroad. This segment of the market is
highly supportive of and relevant to the
Government’s aspirations to secure
Malaysia’s position as a hub for
healthcare excellence.
Further leveraging on the industry’s long
term potential, KPJ has continued to
increase its overall capacity to serve a
larger segment of the population. Plans
include a RM1.29 billion investment for
the building of up to eight new hospitals,
all of which are to be ready between
2018 and 2019.
CORPORATE EXERCISES
As a proactive step to boost continuous
growth, the Group sold RM800 million
(US$219 million) private placement
Islamic medium term notes off its
RM1.5 billion Sukuk programme, based
on the Shariah principle of Murabahah.
The three tranches include a RM250
million 6-year tranche to yield 5.75%, a
RM300 million 7-year tranche to yield
5.85% and a RM250 million 8-year
tranche to yield 5.95%.
Proceeds raised from the issue, via a
wholly-owned subsidiary of the Company
called Point Zone (M) Sdn Bhd, have
been used for Shariah-compliant
purposes including the refinancing of
existing outstanding facilities. It was
used for working capital requirements of
the KPJ group’s healthcare and
healthcare related businesses. The
Sukuk programme was authorised by
the Securities Commission in November
2014 and the deal was arranged by
Affin Hwang Investment Bank and
Maybank Investment Bank.
Plans include a
RM1.29 billion
investment for the building of up to
eight
new hospitals
10
