KNM Group accepts RM203mil Exim Bank financing

KUALA LUMPUR:  KNM Group Bhd's unit has accepted an overseas project financing facility for 35mil pound sterling or RM203.7mil from Export-Import Bank of Malaysia Bhd.

The Oil and gas company said on Friday its unit Peterborough Green Energy Ltd would use the facility to part finance the construction of phase 1, 18MW waste-to-energy power plant in Peterborough, UK.

“The tenor for the facility is for 11 years only and the facility will inter alia, be guaranteed by KNM,” it said.

The facility, it said, would raise KNM's gearing for FY ending Dec 31, 2016 to 0.34 times from 0.27 times at end-2015.

KNM also said its unit KNM Process Systems Sdn Bhd has to-date received orders from Spain's Tecnicas Reunidas to fabricate the high thickness vessels and high thickness columns amounting to US$23.15mil (RM93.31mil).

The contracts are for 16 to 18 months starting from the respective purchase order dates.