KUALA LUMPUR (Nov 7): Sabah Development Bank Bhd has granted term loan facilities of up to RM50 million to Borneo Oil Bhd for the gold miner's general working capital requirements.

In a bourse filing on Tuesday, Borneo Oil said the facility comprises a term loan facility of up to the maximum aggregate principal amount of RM20 million (Tranche 1) and another of up to the maximum aggregate principal amount of RM30 million (Tranche 2).

"Under Tranche 1, there will be no principal instalment on the first to third month. The monthly instalment of RM172,413 each will be payable on the fourth to 119th month. A full repayment together with interest, default interest and other outstanding costs will be due and payable on the 120th month until indebtedness, including all principal amount, interest, default interest and other costs, are fully repaid and settled," it added.

Borneo Oil said Tranche 2 will be advised based on Sabah Development Bank’s review and assessment of Tranche 2 upon completion of all documentation and compliance of all conditions precedent.

"Assuming the banking facility is fully drawn down, the gearing ratio is 5.63% based on the audited consolidated results of the group as at June 30, 2023," said Borneo Oil.

The banking facility will not have any material effect on the group's net assets and earnings per share for the financial year ending June 30, 2024, it added.

Borneo Oil shares closed unchanged at 1.5 sen on Tuesday, giving it a market capitalisation of RM134.68 million.