Taken from The Star.

I read it as, by having the bond, they reduce the debt gearing from 0.6 to 0.5

Correct?

Strange as to me, bond is still a debt to the company which they have to pay back plus interest.

Or due to some funny clause in accounting, bonds are not considered as debt?

Hope some sifu can help here. Thanks.

Thanks Sifu!

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Are sukuk closer to equity or to debt?
Sukuk can be structured in a variety of ways. In terms of risk/return profile, asset-backed sukuk are arguably closer to an equity position because sukuk holders own the underlying asset and have no recourse to the originator in the event of a payment shortfall. Asset-based sukuk are closer to debt because sukuk holders have recourse to the originator if there is a shortfall in payments.
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I did badly in my accounting unit in secondary school time. I am lost as the article above refers to the SAME thing (asset based sukuk) and said 2 different things.

If sukuk = shares (in some Islamic way), then I can see how it reduces the debt gearing. If it is a loan (like normal bond), then I need classes on arithmetic 001, 002, 003 --- 999.

Thanks.

Now I know where I went wrong.

I need eye glasses and better reading skill! Ha.

Asset backed

and

Asset based

Tak sama.

Cheerio.

One question came to mind when looking at some DPS data.

Say performance of XYZ is as below

2010 50 cts DPS share price at RM10 8 million shares
2011 40 cts DPS share price at RM10 8.8 million share (1 for 10 bonus)

AA
Should 2010 DPS be corrected for 2011 bonus share? That is 50*8/8.8 = 45.45 (relative to 2011)

BB
If yes to AA, are the DPS reported in KLSE the raw DPS without correction?

CC
I think EPS is corrected for changes in share number so that EPS for different years can be compared. Right?

Thanks.

Yes, understood.

But when I analyse a company's past performance, should I adjust the past DPS, EPS etc for the changes in shares volume?

SPG corrects for that. But they have stopped the publication. So asking whether company data one sees in the KLSE web are actual raw or corrected DPS EPS etc.

Cheerio.