Valuecap shareholders agree to refinance RM5.1b loan

 

SHAREHOLDERS of Valuecap Sdn Bhd have agreed to refinance the RM5.1 billion loan previously extended to the government investment agency, the Dewan Rakyat was told today.

Second Finance Minister Tan Sri Nor Mohamed Yakcop said the loan is due for full settlement in February next year.

Valuecap had settled the loan interest within the specified period and at the same time paid dividends to its shareholders, he said when winding up the debate on Budget 2009 at committee stage.

Set up in 2003, Valuecap, jointly owned by Khazanah Nasional Bhd, Permodalan Nasional Bhd (PNB) and Employees Provident Fund (EPF), is a fund manager set up to invest especially in the Malaysian equity market.

On the RM5 billion borrowed from EPF and pumped into Valuecap to buy up undervalued stocks, Nor Mohamed said the loan would not pose any risk to EPF as it was 100 per cent guaranteed by the federal government.

Furthermore, EPF did not have any equity in Valuecap, he said. - Bernama