KUALA LUMPUR: Malakoff Corp Bhd has secured a US$80mil (RM346.2mil) term loan facility which will be used to pay all the outstanding amount under an existing term loan facility, resulting in interest savings.
In a filing with Bursa Malaysia, the independent power producer said the existing facility was obtained to fund unit Malakoff International Ltd’s (MIL) purchase of a 40% effective equity stake in Bahrain’s Hidd Power Co, which operates a power generation and water desalination plant, in 2012.
MIL entered into a facility agreement on Tuesday with Mizuho Bank Ltd’s Labuan branch for the US$80mil facility to pay the facility’s outstanding amount and fees and related expenses.
The facility has a tenure of three years. The facility will be secured by, among others, a corporate guarantee of US$80mil in favour of Mizuho by Malakoff Corp.
The facility will also be secured by a charge over all shares of a wholly-owned subsidiary of MIL and an assignment of debt service account maintained by MIL with Mizuho as security trustee.
“The facility will offer interest savings to the company due to the favourable rates obtained for the facility and will not increase the company’s gearing as it will be wholly utilised to refinance the existing term loan,” Malakoff said.
Malakoff did not disclose what the favourable rates are or how much it expected to gain in interest savings.
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