YNH Property Outlines Funding Plan For Sukuk Redemption

KUALA LUMPUR — YNH Property Berhad (YNH) has outlined its funding strategy to meet the upcoming RM170 million Sukuk Wakalah maturity on February 26, 2027, following a rating downgrade by MARC Ratings.

The rating agency downgraded YNH’s RM700 million Sukuk Wakalah programme to B-IS from BB-IS and placed it on MARCWatch Negative after identifying a temporary RM6.8 million shortfall in its designated reserve account as of October 27, 2026. YNH clarified that the deficit relates to scheduled cash accumulation rather than a missed principal payment, adding that steps are underway to rectify the balance within the 30-day contractual remedy period.

YNH Property

To secure redemption funds, YNH is expediting the proposed RM170 million land disposal in Desa Sri Hartamas to Sunway Living Space Sdn Bhd. The sale is expected to net approximately RM105 million in cash proceeds after settling an existing RM65 million bank loan tied to the property. Operationally, the group relies on progressive billings and cash inflows from its Solasta Dutamas project in Kuala Lumpur and township developments in Manjung, Perak.

Group Managing Director Allan Yu Kai Leun emphasized management’s focus on converting sales and asset monetizations into cash while maintaining construction timelines. Separately, YNH reported receiving an unmodified audit opinion from Morison LC PLT for FY2026, ending three consecutive years of qualified opinions following the implementation of enhanced investment governance procedures.

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