KRETAM

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OTHERS KRETAM HOLDINGS BERHAD (KRETAM OR THE COMPANY) - BANKING FACILITIES GRANTED BY AFFIN BANK BERHAD TO GREEN EDIBLE OIL SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF KRETAM

KRETAM HOLDINGS BERHAD

Type Announcement
Subject OTHERS
Description
KRETAM HOLDINGS BERHAD (KRETAM OR THE COMPANY)
- BANKING FACILITIES GRANTED BY AFFIN BANK BERHAD TO GREEN EDIBLE OIL SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF KRETAM

The Board of Directors of Kretam wishes to announce that a wholly-owned subsidiary of the Company, Green Edible Oil Sdn Bhd (“GEOSB”) which produces refined palm oil products, has accepted banking facilities from Affin Bank Berhad (“the Bank”) as set out below:-

Type of Facilities                                                                                          Facility Limit

I)   Bankers Acceptance - Purchase                                                            RM38,000,000

     Flexi Trade Loan - Services (up to an amount of RM3,000,000)

II)  Foreign Exchange Loan Equivalent Risk (FX LER)                                RM2,000,000

     - with Notional Limit of RM20,000,000

Total                                                                                                             RM40,000,000

Purpose: To finance the local purchase of Crude Palm Oil and related raw materials, to finance (up to 100%) local purchase (sight/usance) in Ringgit Malaysia of selected services related to GEOSB's business, and to hedge foreign exchange risk.

The facilities are secured by, inter alia, the following:-

a)      An “Open All Monies Facilities Agreement” to be executed between GEOSB and the Bank and to be stamped as principal instrument;

b)      A “Third Party First Legal Charge” for RM40,000,000 to be created and stamped nominally over four (4) parcels of oil palm plantation measuring 853.33 hectares in favour of the Bank; and

c)      A Corporate Guarantee for RM40,000,000 to be executed by Kretam.

The facilities are not expected to have a material impact on the earnings per share, net tangible assets per share, share capital and the substantial shareholders’ shareholdings of Kretam for the financial year ending 31 December 2020.

None of the Directors and/or major shareholders of Kretam or persons connected to them have any interest, direct or indirect, in the facilities.

This announcement is dated 29 June 2020.






Announcement Info

Company Name KRETAM HOLDINGS BERHAD
Stock Name KRETAM
Date Announced 29 Jun 2020
Category General Announcement for PLC
Reference Number GA1-29062020-00014