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BackJan 28, 2014
Type Announcement
Subject OTHERS
Description BORROWING AND PROVISION OF CORPORATE GUARANTEE

The Board of Directors of Rimbunan Sawit Berhad (“RSB”) wishes to announce that on 26 December 2013, RSB Palm Oil Mill Sdn Bhd, a wholly-owned subsidiary of RSB has entered into a Master Banking Facilities Agreement with Bank Pertanian Malaysia Berhad amounting to RM95.0 million comprises of BBA Facility (BBA), Revolving Working Capital Facility-i (RWCF-i), Letter of Credit-i (LC-i) and Bank Guarantee-i (BG-i) and that RSB shall provide Corporate Guarantee and Indemnity to RSB Palm Oil Mill Sdn Bhd to secure the indebtedness pursuant to the aforesaid banking facilities.

Financial Impact

Save and except for an impact expected of the return on capital with cash and debt leverage on the said banking facilities, it is not expected to have effect on the earnings per share and net tangible assets per share of RSB for the current financial year. The said banking facilities will result in the Group’s Debt: Equity ratio shift to 0.83 from 0.73 previously. The existing share capital and major shareholders’ shareholding of the Company will not be affected by the said banking facilities and the provision of Corporate Guarantee and Indemnity.

Interest of the Directors and/or Major Shareholders

None of the Directors and/or Major Shareholders of RSB and/or persons connected with them have any interest, direct or indirect, in the abovementioned banking facilities and the provision of Corporate Guarantee and Indemnity.

Statement by Directors

The Board of Directors having considered all aspects of the abovementioned banking facilities, is in the opinion that the abovementioned banking facilities and the provision of Corporate Guarantee and Indemnity are in the best interests of the Company and are not detrimental to the minority shareholders.

This announcement is dated 27 January 2014.

 


Announcement Info

Company Name RIMBUNAN SAWIT BERHAD  
Stock Name RSAWIT    
Date Announced 28 Jan 2014  
Category General Announcement
Reference No CC-140128-0D514