KPJ HEALTHCARE BERHAD ("KPJ" OR "COMPANY") - ACCEPTANCE OF FINANCING FACILITY
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This announcement is dated 7 April 2010.
1. INTRODUCTION
Pursuant to Paragraph 9.04(e) of the 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 OCBC Al-Amin Bank Berhad (“Bank”) for the grant of a RM50.0 million Islamic Financing Facility (“Financing Facility”) for working capital requirement purposes.
2. DETAILS OF THE FINANCING FACILITY
Salient terms of the said Financing Facilities, among others:-
Amount : RM50.0 million Revolving Credit Facility Profit Rate : 0.50% p.a. above the Bank’s cost of funds (currently at 3.5% p.a.) Tenures : 1, 2, 3 or 6 months from the date of drawdown Security : On clean basis
3. FINANCIAL EFFECTS
The annual interest payable on the Financing Facility (assuming the said facility is fully drawn down) is estimated to be RM1.7 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 and its subsidiaries (“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 0.6 times from its current gearing ratio of 0.5 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.
