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Basically, a RCUIDS is known as quasi capital, meaning it is a debt at some point in time and equity the other time, but it cannot be both at the same time.
if AirAsia has enough money to pay back the debt from this rights issue, the document states that on the 4th year AirAsia can pay the full outstanding principal owed to you and an additional 5% bonus on the nominal rate which is valued at 75sen per right. This means on the 5th year onward since they have already paid out the original principal plus the 5% nominal rate they won’t be obligated to continue paying the 8% profit per annum.
Ong , retailer’s just a small batches ! Normally it own by big fund ! But if they manage to pay back the debt before 5th year , they have right not to continue giving the 8% profit !
But by the way who cares ? Investors care more about the shares price ! So it very obvious when Airasia do RCUIDS , they are really confident one day “ I will be back “ ! Hahahahaha !
