I am still trying to understand TH financial engineering;
The current state is;
Good Assets RM57B
Not so good Assets RM10B
Impaired Assets (RM10B)
Nett Assets RM67B
Depositors Funds RM77B
(Note: liabilities ignored..not big)
The current state is;
Good Assets RM57B
Not so good Assets RM10B
Impaired Assets (RM10B)
Nett Assets RM67B
Depositors Funds RM77B
(Note: liabilities ignored..not big)
Thus...Nett Assets is less than Depositors Funds...so can't give bonus lah.
Solution:
Sell RM20B of the "not so good assets&impaired assets" to SPV.In return dapat IOU~
Sukuks RM10B(7 years maturity with 5%/annum profit...not sure given annually or on maturity
Solution:
Sell RM20B of the "not so good assets&impaired assets" to SPV.In return dapat IOU~
Sukuks RM10B(7 years maturity with 5%/annum profit...not sure given annually or on maturity
Some fancy papers tak ingat nama.. RM10B with no income and no maturity date.
After the swop,TH balance sheet looks like this~
Good Assets ........RM57B
IOUs from SPV.......RM20B
Total.......................RM77B
Depositors Fund....RM77B
Voila~now can give bonus
After the swop,TH balance sheet looks like this~
Good Assets ........RM57B
IOUs from SPV.......RM20B
Total.......................RM77B
Depositors Fund....RM77B
Voila~now can give bonus
The RM20B IOUs have no guarantees from Govt.
The SPV hv to manage the assets,kasi cantik...if all works out well...can sell and make enuff money to redeem back the IOUs and give TH the RM20B+5% Sukuk profits.
The SPV hv to manage the assets,kasi cantik...if all works out well...can sell and make enuff money to redeem back the IOUs and give TH the RM20B+5% Sukuk profits.
So now at SPV...we can look at two scenarios
1)What if they make profits on the RM20B asset...Will TH get a share of the profits?How many % of the profits.
2)What if they cannot sell the assets...or sell at a loss and thus cannot redeem the IOU?Will Govt step in and PAY TH?
1)What if they make profits on the RM20B asset...Will TH get a share of the profits?How many % of the profits.
2)What if they cannot sell the assets...or sell at a loss and thus cannot redeem the IOU?Will Govt step in and PAY TH?
At TH side...the question is whether they can make enuff profits on the RM57B to give decent bonus to the RM77B deposits?Will TH give a projection of the bonus..at least for 5 years going forward?
That in a nutshell are the "issues" on this deal.Unlike Danaharta deals where some people hv to take haircuts (Hutang RM1.00..get back only RM0.50)~don't think TH depositors will agree to take haircuts.Maybe some creditors may hv to.
Remember:Depositors are 100% Gov Guarantee
Remember:Depositors are 100% Gov Guarantee
Why complicate the matter if the SPV is very confident of recovering value.
Why don't SPV issue the IOUs with Gov Guarantee to raise RM20B cash...and just pay TH cash for the assets.
Nett effect is the same (at the end of the day).
Why don't SPV issue the IOUs with Gov Guarantee to raise RM20B cash...and just pay TH cash for the assets.
Nett effect is the same (at the end of the day).
What do you folks think?Am I getting the story wrong?
My Twitter friend @DaudSuratman says that key is "communications with all stakeholders"...lots of transparency.Everything explained.TH got 9m depositors,thousands of direct & indirect employees,a very big supply chain...and so many "future" members.
@threadreaderapp unroll please
