Kulim Bhd ... July 09

It will use its new RM430mil loan facility to refinance old debts as well as for working capital requirements for its business operations, including its latest investment in shipping.

The group would utilise about RM310mil to settle some old debts.

The current low interest rate environment provides them with the opportunity to restructure and optimise its capital structure to match its earnings profile and expansionary needs.
The loan would be partly used to finance the replanting of its old oil palm trees.

Meanwhile, Sindora Bhd (in which Kulim has a 76% stake) subsidiary EA Technique (M) Sdn Bhd, via subsidiary Orkim Sdn Bhd, recently acquired six new vessels in view of the profitable charter rates. The loan would be used to partly finance the shipping operations as well.

The group would continue to be on the lookout for plantation land banks.

Meanwhile, Kulim’s London Stock Exchange-listed subsidiary New Britain Palm Oil Ltd’s new £17mil refinery facility in Liverpool was expected to start operation early next year (2010).

The loan facility was structured under the Islamic principle of Ijarah Muntahia Bittamleek or sale and leaseback with ownership of the Ijarah assets transferred to the lessee at the end of the Ijarah tenure. Kulim utilised 16 pieces of self-owned oil palm plantations to facilitate the Ijarah transaction.

The facility was its first syndicated corporate financing deal concluded since its establishment in December last year (2008).

Related post:-
Kulim ... Sept 2008
Kulim/Sindora ... May 2008