PETALING JAYA: Resintech Bhd’s 55%-owned subsidiary Johan Panglima (M) Sdn Bhd has secured RM41 million in Commodity Murabahah term financing from Alliance Islamic Bank Bhd to fund a proposed hostel and retail development in Selangor.
The financing will be used to redeem four parcels of land in Mukim Telok Panglima Garang, Kuala Langat, and part-finance 80% of the construction cost of the proposed development, according to a filing with Bursa Malaysia.
The project will comprise three blocks containing 158 hostel units, four retail shops, a canteen and other facilities.
Resintech said the acceptance of the facilities is expected to increase the group’s gearing ratio for the financial year ending March 31, 2027.
Based on the group’s latest audited financial position and assuming the facilities are fully utilised, gross borrowings would rise to RM77.03 million from RM62.29 million, while its gearing ratio would increase to 0.34 times from 0.28 times.
The facilities will be secured, among others, by the land and proposed development, as well as an assignment over future rental proceeds.
Resintech and C N H Group Sdn Bhd, which holds the remaining 45% stake in Johan Panglima, will also provide corporate guarantees for the facilities.
The company said the financing is not expected to have a material impact on its earnings for the financial year ending March 31, 2027, as financing costs incurred during the construction period will be capitalised. However, the utilisation of the facilities is expected to contribute positively to group earnings in subsequent years.
