PETALING JAYA: Sern Kou Resources Bhd
's wholly owned subsidiary, Valued Products (M) Sdn Bhd (VPM), has accepted an additional RM7mil banking facility from CIMB Islamic Bank Bhd.
In a Bursa Malaysia filing, the furniture manufacturer said the additional facility increases VPM's total banking facilities with CIMB Islamic to RM16.5mil from RM9.5mil previously.
Sern Kou said the additional banking facility will be used to support the group's trade financing activities, including the purchase and importation of goods and other trade transactions.
It said the facility is also subject to the execution of a deed of subordination over advances of RM3mil from the company to VPM within six months from the acceptance date.
Assuming full drawdown of the banking facility, Sern Kou's gearing ratio is expected to increase to 0.58 times from 0.55 times based on its latest audited financial statements as at June 30, 2025.
