Issuer's Right to Defer Payment of Expected Periodic Distribution Amount

The Issuer may, at its sole discretion, elect to defer payment of the whole or part only of any scheduled Expected Periodic Distribution Amount on the Sukuk Musharakah by giving an Optional Deferral Notice to the Sukuk Trustee and the Facility Agent in accordance with the terms set out in the Trust Deed. The Issuer is not subject to any limit as to the number of times the Expected Periodic Distribution Amount and the Arrears of Deferred Periodic Distribution can be deferred except that the provisions on the Dividend and Capital Stopper (as defined in the PTC) shall be complied with until all outstanding Arrears of Deferred Periodic Distribution have been paid in full.

Accordingly, there is a risk that the Sukukholders may not receive any Expected Periodic Distribution Amount on the Sukuk Musharakah on the relevant Periodic Distribution Dates or at all, as the Issuer has the sole discretion to decide whether or not to defer payment of the Expected Periodic Distribution Amount to the Sukukholders (provided that no Compulsory Periodic Distribution Payment Event has occurred). Any such deferral by the Issuer of the Expected Periodic Distribution Amount will likely have an adverse effect on the market value of the Sukuk Musharakah.

Optional Deferral of Periodic Distributions

Yes, provided that 6 months prior to the relevant Periodic Distribution Date, there has been no dividend paid/ declared and no share buyback
Dividend and Capital Stopper

Yes

Dividend and Capital Pusher

Yes, within 1 month from breach of Dividend & Capital Stopper

The Issuer may, at its sole discretion, elect to defer payment of the whole or part only of any scheduled Expected Periodic Distribution Amount on the Sukuk Musharakah by giving an Optional Deferral Notice to the Sukuk Trustee and the Facility Agent in accordance with the terms set out in the Trust Deed. The Issuer is not subject to any limit as to the number of times the Expected Periodic Distribution Amount and the Arrears of Deferred Periodic Distribution can be deferred except that the provisions on the Dividend and Capital Stopper (as defined in the PTC) shall be complied with until all outstanding Arrears of Deferred Periodic Distribution have been paid in full.

Unfortunately there is no avenue for individuals in Malaysia to learn except through people who are familiar with the bonds itself, who are mostly in the banking/finance/accounting industry.

And yes, they can default anytime and investors are unable to pursue legal action against them. Hence the high coupon to compensate for that risk. Singaporean investors learnt this the hard way. Given the flood of new perpetual bonds in recent years, it's just a matter of time before one blows up here. DYODD.