In a filing to Bursa Malaysia made late yesterday, DRB-Hicom Bhd announced that its subsidiary Proton Holdings Bhd. has received RM250 million in financial aid, the final tranche of the RM1.5 billion soft loan granted by the Ministry of Finance.
The soft loan will be granted in the form of redeemable convertible cumulative preference shares (RCCPS), issued by Proton Holdings to Govco Holdings Bhd, a company owned by Minister of Finance Incorporated, at a price of RM1 each.
Earlier in June, the government announced that it will be granting Proton RM1.5 billion in soft loan. Initially, it was said that the loan will be given in three tranches. The initial RM1.25 billion was given out on 7-June, and yesterday’s announcement represented the final tranche.
Earlier reports have quoted Proton chairman Datuk Seri Syed Faisal Albar as saying that the soft loan will be used to pay its vendors, and that Proton does not need any further financial assistance after this.
In June, Proton launched the all-new Perdana. The model is adapted from the previous generation Honda Accord. Later this month, Proton will be launching the all-new Proton Persona, while an all-new Proton Saga and an unnamed MPV that will be based on the Suzuki Ertiga will round up Proton’s product renewal efforts.