Investor Relations

KPJ Healthcare Berhad (KPJ) is one of the leading private healthcare providers in the region with a network of 29 hospitals in Malaysia, 1 hospital in Thailand, 1 hospital in Bangladesh and 4 retirement and aged care facilities in Kuala Lumpur, Sibu, Pahang and in Brisbane, Australia. With more than 3,500 operating beds, KPJ hospitals offer a comprehensive range of specialist medical services that treated more than 3 million patients in 2022.

Bursa Announcements

Acceptance Of Financing Facility

BackMay 26, 2010

Date Announced

26/05/2010

Type

Announcement

Subject

KPJ HEALTHCARE BERHAD (“KPJ” OR THE “COMPANY”)

- ACCEPTANCE OF FINANCING FACILITY

Contents

This announcement is dated 26 May 2010

1. INTRODUCTION

Pursuant to Paragraph 9.04(e) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of KPJ (“Board”) is pleased to announce that the Company had on even date accepted an offer by HSBC Bank Malaysia Berhad (“Bank”) for the grant of a RM50 million Revolving Loan Facility (“Financing Facility”) for the purposes of working capital requirements of KPJ and its subsidiaries (“KPJ Group”) and to bridge funding gaps in the acquisition of new hospitals.

2. DETAILS OF THE FINANCING FACILITY

Salient terms of the said Financing Facilities, among others:-

Amount : RM50 Million Revolving Loan Facility
Interest Rate : 0.50% p.a. above the Bank’s cost of funds (currently approximate 2.66% p.a.)
Tenures : 1, 2 or 3 months from the date of drawdown
Security : Clean
Covenants : - Gearing of KPJ shall not exceed 1.25 times at all times
- Minimum Earnings Before Interest and Tax (EBIT) to Interest ratio of 4.0 times at all times

3. FINANCIAL EFFECTS

The annual interest payable on the Financing Facility (assuming the said facility is fully drawn down) is estimated to be approximately RM1.6 million. However, the said facility is to be used to finance the working capital of KPJ’s expanded operation which is expected to contribute positively to the future earnings of KPJ Group.

The acceptance of the Financing Facility (assuming the said facility is fully drawn down) is expected to increase the gearing ratio of KPJ Group to 0.7 times from its current gearing ratio of 0.6 times as at 31 December 2009.

4. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors and/or major shareholders of KPJ or persons connected to the Directors and/or major shareholders of KPJ have any interest, direct or indirect in the Financing Facility.

Announcement Details :