Koh Brothers Group Limited Announces Supplemental Information Memorandum for 5.20% Notes Due 2030

Key Highlights for Investors

• Issuance of 5.20% Notes Due 2030: Koh Brothers Group Limited has announced the proposed issuance of 5.20% per annum fixed-rate notes, due in 2030 (the “Series 4 Notes”), under its existing S\$250,000,000 Multicurrency Medium Term Note Programme.
• Supplemental Information Memorandum Released: The company has published a supplemental information memorandum dated 25 March 2026, which provides updated and additional information regarding the Series 4 Notes and is to be read in conjunction with the original information memorandum dated 3 October 2017.
• Joint Lead Managers Appointed: CIMB Bank Berhad, Singapore Branch, and United Overseas Bank Limited have been appointed as joint lead-managers for this new issuance.
• Application for SGX-ST Listing: Application will be made for the Series 4 Notes to be listed and quoted on the Singapore Exchange Securities Trading Limited (SGX-ST).

Detailed Updates and Changes

The supplemental memorandum incorporates key updates and changes that investors and shareholders should note:

• The Issuer: Updates regarding the current condition and developments of Koh Brothers Group Limited since the last memorandum in 2017.
• Selected Consolidated Financial Information: Refreshed financial data to provide investors with up-to-date insights into the financial health of the company.
• Investment Considerations: Revisions focusing on new and emerging risks or opportunities based on recent factual developments.
• Clearing and Settlement: Updated mechanisms for the clearing and settlement of the Series 4 Notes.
• Singapore Taxation: Notable updates reflecting the latest changes in Singapore tax regulations, which may affect returns for noteholders.
• Subscription, Purchase, and Distribution: Revised terms and processes for subscribing to and purchasing the new notes.
• General and Other Information: Additional general updates and information relevant to the offering.

Potentially Price-Sensitive Information

Significance for Shareholders and Investors:

The issuance of the Series 4 Notes represents a significant move by Koh Brothers Group Limited to tap the capital markets for long-term financing at a fixed rate of 5.20% until 2030. This can have several implications:

• Strengthening Liquidity: Successful issuance will improve the company’s liquidity position and provide additional capital for expansion or operational needs.
• Interest Expense: Shareholders should note the potential impact on the company’s interest expenses over the next four years, which may affect net profit margins.
• Market Perception: The ability to issue and list notes on SGX-ST may be seen as a positive endorsement of the company’s creditworthiness and strategic direction.
• Regulatory and Tax Updates: Changes to Singapore taxation and regulatory frameworks may affect the returns for noteholders and could influence overall investor sentiment towards the company.
• Share Price Sensitivity: If the market views this fundraising exercise as a sign of growth and financial robustness, the share price could respond positively. Conversely, concerns over increased leverage and higher interest obligations could weigh on the stock.

Next Steps and Approvals

The company will be seeking permission from the SGX-ST for the Series 4 Notes to be listed and quoted. Approval in-principle and admission to the Official List are pending, and shareholders should monitor further announcements for updates on the listing status.

Conclusion

The launch of the Series 4 Notes under the S\$250 million multicurrency medium-term note programme, with updated terms and financial information, is a significant financial event for Koh Brothers Group Limited. Investors and shareholders are advised to review the supplemental information memorandum in detail and consider the potential impacts on the company’s financial position and future growth prospects.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. Investors should review official company documents and consult with their financial advisors before making any investment decisions. The author and publisher accept no liability for any actions taken based on the information provided herein.

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