KULIM (Malaysia) Bhd has inked an agreement with CIMB Islamic Bank Bhd and OCBC Al-Amin Bank Bhd to take on a RM430 million Syndicated Islamic Term Financing Facility.
The financing facility is structured under the Islamic principle of Ijarah Muntahia Bittamleek or sale and leaseback with ownership of the Ijarah asset transferred to the lessee at the end of the Ijarah structure.
Kulim utilised 16 pieces of self-owned oil palm plantation to facilitate the Ijarah transaction.
Speaking to the reporters after the signing ceremony today, its managing director Ahamad Mohamad said the company planned to utilise the proceeds to finance some of its old debts as well as for business expansion.
He said the group’s total capital expenditure (capex) for this year will amount to RM300-RM400 million.
“Most of it (capex) will go to replanting (of oil palm) and building of new refinery in Liverpool (United Kingdom),” he said.
Founded in 1933, Kulim’s four core business operations are in oil palm plantations, oleochemicals, foods and restaurants and intrapreneur ventures.
Apart from its operations in Malaysia, Kulim Group has operations in Papua New Guinea, the Solomon Islands and Singapore. It recently expanded into Cambodia, Hong Kong and India. – Bernama
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