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OTHERS Financing Facilities from Export-Import Bank of Malaysia Berhad

Amended Announcements
Please refer to the earlier announcement reference number: GA1-27072021-00065

KNM GROUP BERHAD

Type Announcement
Subject OTHERS
Description
Financing Facilities from Export-Import Bank of Malaysia Berhad

Introduction

KNM Group Berhad (“KNM” or “Company”) is pleased to announce that the Company has on 27 July 2021 entered into a Facility Agreement  which consists of Advance Payment Guarantee (“APG”), Performance Bond Guarantee (“PBG”) and Warranty Bond (“WB”) not exceeding United States Dollar Twenty One Million (USD21,000,000.00) and Euro Eight Million (€8,000,000.00) respectively only (“Financing Facilities”) from Export-Import Bank of Malaysia Berhad (“the Bank”).

 

Salient Terms of the Transaction

 

The salient terms of the Financing Facilities are as enunciated below :

 

(a) Purpose of Financing Facilities

The Financing Facilities shall be for the purpose of facilitating the issuance of bank guarantees for overseas projects / contracts undertaken by the Company and its subsidiary companies i.e. KNM Process Systems Sdn Bhd, FBM Hudson Italiana SpA and FBM-KNM FZCO.

 

(b) Security

 

The Financing Facilities are secured by :

 

(i) Placement of cash deposits into a designated collateral account as required by the Bank for each bank guarantee utilised under the Financing Facilities over a period of 12 months. 

 

(ii) Bond Risk Insurance coverage for each bank guarantee issued/utilised.

 

(c) Tenure of the Financing Facilities

 

The Financing Facilities is available within a period of 12 months from the date of the Master Facility Agreement or such other date which shall be deemed to include any extension thereof made by EXIM Bank at its sole and absolute discretion from time to time, provided that the first disbursement utilisation shall be made within 6 months from the date of the Master Facility Agreement.

 

The tenure of each bank guarantee shall be up to the requirement of the contract to be financed.

 

Rationale for entering into the Transaction

The Financing Facilities will enable the Company and its respective subsidiary companies to enhance their capacity to secure more new contracts from the customers, to meet the contractual requirements on bank guarantees imposed by the customers and to improve liquidity of the Company and its respective subsidiary companies. 

 

Financial Effects

 

(a) Issued and Paid-up Share Capital and Shareholdings of Substantial Shareholders

The Financing Facilities are not expected to have any effect on the issued and paid-up share capital of the Company nor the shareholdings of the Company’s substantial shareholders.

 

(b) Earnings

The Financing Facilities will not have any material effect on the earnings of the Company for the financial year ending 31 December 2021. 

 

(c) Net Assets & Gearing 

The Financing Facilities are not expected to have any material effect on the net assets and gearing of the Company for the financial year ending 31 December 2021. 

 

Approval(s) 

The Financing Facilities are not subject to the approval of the shareholders of KNM or any other regulatory authority in Malaysia.

 

Directors’ Statement 

Having considered all aspects of this Financing Facilities, the Board of Directors is of the opinion that the acceptance of the Financing Facilities is in the best interest of the Company.

 

 

This announcement is dated 29 July 2021. 

 

Remark :  Amendment is made on the date of the Facility Agreement.

 

 






Announcement Info

Company Name KNM GROUP BERHAD
Stock Name KNM
Date Announced 29 Jul 2021
Category General Announcement for PLC
Reference Number GA1-29072021-00094




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