source of finance recommendation

• Preference shares


  Also known as preferred stocks, offer fixed dividends before any are paid to common shareholders and typically do not provide voting rights, distinguishing them from common shares. These shares may also include options for conversion into common shares or redemption by the issuer, adding flexibility for both the investor and the company.
• Preference shares


  • Provide the necessary capital without negatively impacting cash flows
  • Dividends on preference shares can be deferred until the company's financial situation permits, unlike debt, which requires ongoing interest payments
  • Treated as equity, not increasing the company's debt burden
  • Maintains a low debt-to-equity ratio, crucial for real estate companies
  • Aids in managing borrowing capacity for funding other projects
  • Leads to a stronger balance sheet and lower leverage, which in turn result in better credit ratings and reduced future borrowing costs
• Preference shares are a suitable source of finance that is currently not being utilized by Eco World
• The first advantage of using preference shares for financing in Eco World is that they provide the necessary capital without negatively impacting cash flows
• This is ideal for large projects like Se.duduk D'Kajang, which require substantial initial investments
• The next advantage is the reduced impact on credit ratings and leverage