SURIA

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TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONS Tawarruq Financing Facility of RM80 Million

SURIA CAPITAL HOLDINGS BERHAD

Type Announcement
Subject TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS)
NON RELATED PARTY TRANSACTIONS
Description
Tawarruq Financing Facility of RM80 Million

The Board of Directors of Suria Capital Holdings Berhad (“Suria”) wishes to announce that its wholly-owned subsidiary, Sabah Ports Sdn Bhd (“SPSB”) has secured a Tawarruq Financing Facility of RM80 million (“Facility”) from Bank Pembangunan Malaysia Berhad (“BPMB”).

 

The purpose of the Facility is to enable SPSB to finance the construction of a new oil jetty extension at the existing Sapangar Bay Oil Terminal (“SBOT”) located at Sapangar, Sabah.

 

The construction of the new jetty extension at SBOT will entail the construction of an additional jetty accommodating two (2) additional berths designed to handle two (2) vessels at one time for further efficiency. The construction of the new jetty extension is very timely and crucial in view of the high utilisation rate and growing liquid cargo throughput being handled at the current jetty at SBOT and thus, will help to ease congestion and reduce vessel’s waiting time. The construction of the new jetty extension will also allow maintenance works of the pipelines to be carried out more efficiently without interrupting the operations and compromising on safety.

 

SBOT, located just nearby the Sapangar Bay Container Port, serves few oil majors such as Shell, Petron and Petronas. SBOT is the only terminal handling liquid bulk serving the west coast of Sabah, handling an average volume of 1.2 million tonnes of bulk oil annually. Once completed, SBOT would have twin jetties that could accommodate vessels at current capacity of 30,000 deadweight tonnage (DWT), to higher capacity of 60,000 DWT.

 

The Facility which comes from BPMB’s Maritime Fund was offered to SPSB under the concept of Bai’ Murabahah via a Tawarruq arrangement. The margin of financing is 78 per cent of the total project costs and is repayable in ten (10) years inclusive of two (2) years of grace period.

 

As the Facility is a long-term financing and is used to finance a capital project, the profit payable until the end of the tenure of the Facility is estimated to be approximately RM21 million. The Facility aligns the corporate debt profile with the cash flow profile of SuriaGroup’s main revenue stream from the port operations and services business.

 

The Facility is not expected to have any effect on the issued and paid-up share capital of Suria or the substantial shareholders’ shareholdings in Suria. Suria is not required to issue a corporate guarantee to BPMB to guarantee the obligations of SPSB under the Facility.

 

The Facility will not have any material effect on the net assets and gearing of SPSB or SuriaGroup based on its latest audited consolidated financial statements as at 31 December 2018 and the unaudited consolidated financial statements for the third quarter ending 30 September 2019.

 

The Board of Directors of Suria and the Board of Directors of SPSB are of the opinion that the Facility is in the best interest of SuriaGroup. None of the Directors and/or Major Shareholders of Suria or SPSB or persons connected with them have any interest, direct or indirect in the said Financing Facility.

 

SPSB was incorporated on 17 June 2002 to take over the management of all port operations in Sabah from Sabah Ports Authority (“SPA”) through the privatisation exercise between the Sabah State Government, SPA, Suria and SPSB effective September 2004. Being the concession company, SPSB provides berthing, handling and cargo facilities to its port customers in eight (8) strategic locations around Sabah namely; Sapangar Bay Container Port, Sapangar Bay Oil Terminal, Kota Kinabalu Port, Sandakan Port, Tawau Port, Lahad Datu Port, Kunak Port and Kudat Port. Since privatisation, SPSB has been focussing on streamlining port operations and enhancing services with acquisition of new cargo handling equipment, upgrading of cargo handling facilities and investing in manpower to provide a better port service delivery for its port users.

 

This announcement is dated 21 February 2020.






Announcement Info

Company Name SURIA CAPITAL HOLDINGS BERHAD
Stock Name SURIA
Date Announced 21 Feb 2020
Category General Announcement for PLC
Reference Number GA1-21022020-00041