KNM seals guarantee facility for Thai bonds

  • Business
  • Tuesday, 11 Oct 2016

PETALING JAYA: Oil and gas services provider KNM Group Bhd has sealed a guarantee facility for its guaranteed bonds for up to 2.78 billion baht (RM235.19mil) from Credit Guarantee and Investment Facility (CGIF).

In a statement released yesterday, KNM said proceeds from the proposed Thai bonds will be used to support Impress Ethanol Co Ltd, its business unit in Thailand in terms of refinancing the company’s debt, future expansion and working capital expenses for its bio-ethanol plants.

Aside from that, KNM said its unit KNM Capital (PIC) Sdn Bhd has procured RM360mil financing facilities comprising of Islamic guarantee facility based on the syariah principle of Al-Kafalah up to RM200mil from Danajamin Nasional Bhd to guarantee a proposed capital market instrument. This also includes a blanket working capital facilities of up to RM160mil from Affin Islamic Bank Bhd.

“The Danajamin facility and blanket working capital facilities are in relation to the financing of contracts related to the Refinery and Petrochemical Integrated Development project in Pengerang, Johor,” KNM said.

Chief executive officer Lee Swee Eng said securing these financing facilities were significant milestone and major catalyst for thecompany, as they provided additional liquidity and financial flexibility for its working capital needs and strategic growth plans.

“We are extremely pleased to have the support of CGIF, Danajamin and various financial institutions and we look forward to continuing our growth path,” said thecompany.

Despite the challenging landscape, KNM noted that it was the first time the company obtained credit guarantee from Danajamin and substantial working capital facilities from Affin Islamic Bank Bhd.

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