So what does that means to KDC ? High Yield Returns. So why aren't M1 borrows from Bank instead. Likely not cheap either for used telco assets. The banks probably value it very low to none. So essentially could be considered unsecured loans.
At this high cost of borrowing, it could be painful to M1. So need to make sure I don't touch M1 stocks at all. So what-if M1 collapsed ? Is just a relatively small amount to KDC so unlikely to be an Eagle event but will be a dent to KDC valuation. Now, I have to watch M1 now as KDC shareholders. Could this also be a hint that there is lack of growth for KDC ?
And why don't the external lenders cover all the needs and need KDC to support some ? Could it be priority of default for bond is lower and there won't enough asset to be covered beyond what the lender will lend. Good News to Singtel ? Mean time freeze on KDC build up just to be safe.
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