Dec 9, 2015 - Cash Line Facility-i Ijarah (CLF-i). 2,000,000.00 iii. Industrial Hire Purchase-i (IHP-i) / Letter of. Cre
TITLE
1.0
:
ACCEPTANCE OF ISLAMIC FINANCING FACILITY OF RM40.4 MILLION FROM OCBC AL-AMIN BANK BERHAD (“The Facility”)
INTRODUCTION Bina Darulaman Berhad (“BDB or the Company”) is pleased to announce that its wholly owned subsidiary, BDB Infra Sdn Bhd (formerly known as Bina & Kuari (K) Sdn Bhd)(“BDB Infra”), had accepted Islamic Financing Facility of RM40.4 million from OCBC Al-Amin Bank Berhad (“OCBC Al-Amin”) (the Financier). The Facility is for the opening of new asphalt plant and quarry facilities in Kulim, Kedah as well as for existing quarry operations and road construction projects. The documentation process concluded on 9 December 2015.
2.0
INFORMATION OF BDB INFRA SDN BHD BDB Infra is a wholly owned subsidiary of BDB, incorporated in Malaysia under the Companies Act, 1965 and having its registered address at Aras 9, Menara BDB, No.88 Lebuhraya Darulaman, 05100 Alor Setar, Kedah Darul Aman. The principal activity of the company is road building and quarrying.
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PURPOSE OF THE FACILITY The Facility is for the purpose of the followings :
No. 1. 2.
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Particulars New quarry operation at Sg. Ular, Kulim, Kedah
Limit (RM’million) 15.4
General Quarry Operations and Road Construction Contract
25.0
Total
40.4
SALIENT TERMS OF THE FACILITY The summary of the Facility is as follows: a. Bank
: OCBC Al-Amin Bank Berhad 25th Floor, Wisma Lee Rubber, 1 Jalan Melaka, 50100 Kuala Lumpur
b. Type of Facility Type of Facility i. Term Financing-i (MTFi) - Ijarah Muntahiah bi Al-Tamlik (Term-i) ii. Cash Line Facility-i Ijarah (CLF-i)
800,000.00 2,000,000.00
iii. Industrial Hire Purchase-i (IHP-i) / Letter of Credit-i (LC-i), Wakalah Non-Revolving Line (NRL)
12,600,000.00
iv. Omnibus Trade Lines (Letter of Credit-i, Accepted Bill-i, Bank Guarantee-i, Invoice Financing-i) TOTAL c.
25,000,000.00 40,400,000.00
Security (ies) i. ii. iii.
5.0
Limit RM
Facility Agreements Charge Over Cash Deposit Corporate Guarantee from BDB
CORPORATE GUARANTEE BDB as a parent company is required to issue a Corporate Guarantee for RM40.4 million to the Financier in relation to the Facility, which the same had been executed and completed on 9 December 2015.
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FINANCIAL EFFECT The financing cost of the Facility is not expected to have significant effect on the earnings per share and net tangible assets per share of the Group for the current and incoming years.
7.0
DIRECTORS AND SUBSTANTIAL SHAREHOLDERS INTEREST None of the Directors of BDB or any of the shareholders of BDB have any interest, direct or indirect in the aforesaid Facility.
8.0
STATEMENT BY DIRECTORS The Directors of BDB are of the opinion that the acceptance of the Facility is in the normal course of the Group’s business activities and it reflects the confidence of financial institutions on BDB Infra’s strong financial position and future strategic direction.
9.0
DOCUMENTS AVAILABLE FOR INSPECTION The following documents are available for inspection at the Registered Office located at Aras 9, Menara BDB, No.88 Lebuhraya Darulaman, 05100 Alor Setar, Kedah Darul Aman during normal office hour from Sunday to Thursday (except public holidays) :-
1. 2. 3. 4. 5.
Facilities Agreement; Corporate Guarantee Documents; Letter of Offer from OCBC Al-Amin Bank Berhad; Letter of Variation from OCBC Al-Amin Bank Berhad; and Letter Banking Facility Granted.
This announcement is dated on 11 December 2015.
