KUALA LUMPUR: Bina Puri Holdings Bhd
has defaulted on its loan repayment to Export-Import Bank of Malaysia Bhd (Exim Bank), a loan denominated in United States dollars with a principal sum of US$7.65mil and an initial interest rate of 4%.
In a filing with Bursa Malaysia, Bina Puri said it repaid a total of US$5.1mil, which includes US$2.35mil in interest.
However, the recent appreciation of the US dollar against the Ringgit, coupled with the rise in interest rates from 4% to 11%, has led the company to negotiate a loan restructuring with Exim Bank.
Bina Puri said that proposals for restructuring the loan were discussed with the bank, and the bank has, in principle, agreed to the restructuring, which is set to be finalised by the end of February 2025.
“During the discussion with the bank, the company has temporarily ceased the payment in March 2024 pending finalisation of the restructuring of the loan while interest for the period will be capitalised in the principal sum,” it said.
“The company is in discussion with the Bank to restructure the loan sum, and it has temporarily ceased the repayment pending finalisation of the revised repayment plan.
“Hence, the company has delayed in making the announcement as the board believed that making any announcement regarding the default in payment would be premature,” it added.
Bina Puri said any default in payment will be cured and the account with the bank will be normalised upon the loan restructuring being approved by the bank, no later than end of February 2025.
“Accordingly, the company shall adhere to the repayment schedule of the restructured loan once formalised and approved by the bank,” it said.
