1. INTRODUCTION

Pursuant to Paragraph 9.04(e) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of Hextar Global Berhad (“HEXTAR” or “the Company”) wishes to announce that the Company had on 24 September 2020 accepted and executed an Islamic Financing Facility of RM30,000,000 (“the Facility”) from Al Rajhi Banking & Investment Corporation (Malaysia) Bhd. (“the Bank”).

2. DETAILS OF THE FACILITY

The Facility in the aggregate amount of Malaysia Ringgit Thirty Million (RM30,000,000) is in the form of Structured Commodity Financing-i (SCF-i).

2.1 The SCF-i shall be utilised for the purpose of HEXTAR’s Syariah compliant business requirement as working capital of HEXTAR and to be allowed for third party utilisation by the  following Company’s wholly-owned subsidiaries and other subsidiaries within the Hextar Group:-

      (a) Hextar Chemicals Sdn Bhd;

      (b) Halex (M) Sdn Bhd; and

      (c) Halex Woolton (M) Sdn Bhd.

2.2 The financing under SCF-i will be on floating rate.

2.3 The tenure of the SCF-i shall be 4 months from the date of initial disbursement.

2.4 The Facility shall be secured by way of Corporate Guarantee by Hextar Chemicals Sdn Bhd, a wholly-owned subsidiary of the Company.

3. FINANCIAL EFFECT OF THE FACILITY

(a) Issued share capital and substantial shareholders’ shareholdings

The Facility will not have any effect on the issued share capital and the shareholdings of the substantial shareholders of Hextar Group.

(b) Net Asset (“NA”) and NA per share

The Facility will not have any material effect on the audited consolidated NA and NA per share of Hextar Group based on its latest audited consolidated statement of financial position for the financial year ended 31 December 2019.

(c) Earnings and earnings per shares (“EPS”)

The Facility will not have any material effect on the earnings and EPS of Hextar Group for the financial year ending 31 December 2020.

(d) Gearing

The Facility is expected to increase the consolidated gearing of the Hextar Group from 0.67 times to 0.83 times.

4. CONDITIONS, COVENANTS OR RESTRICTIONS

4.1 Amongst the terms of the letter of offer, HEXTAR shall not divest its investment in the shares of Halex (M) Sdn Bhd, Hextar Chemicals Sdn Bhd and Halex Woolton (M) Sdn Bhd; and

4.2 The Company shall not reduce its paid up capital, throughout the subsistence of the Facility.

5. INTEREST OF DIRECTORS AND/OR MAJOR SHAREHOLDERS AND PERSONS CONNECTED WITH THEM

None of the Directors or major shareholders or persons connected to the Directors or major shareholders has any direct or indirect interest in the Facility.

6. DIRECTORS’ STATEMENT

The Board of Directors of HEXTAR is of the opinion that the acceptance of the Financing Facility is in the best interest of HEXTAR Group.

This announcement is dated 24 September 2020.