Resintech Subsidiary Secures RM41 Million for Hostel and Retail Project in Selangor
In this article (6)
Johan Panglima (M) Sdn Bhd, a subsidiary of Malaysia-based plastic pipe and fitting manufacturer Resintech Bhd, has secured financing totaling RM41 million from Alliance Islamic Bank Bhd. These funds are designated for the redemption of land and to partially finance a new hostel and retail complex in Selangor.
The financing facilities, structured as commodity murabahah term financing, will cover 80 percent of the construction expenses for the planned development. The project includes a total of 158 hostel units, four retail shops, a canteen, and various other communal amenities.
Project Details and Financial Impact
According to a filing with Bursa Malaysia, the financing specifically targets the redemption of four land parcels situated in Mukim Telok Panglima Garang, located in Kuala Langat, Selangor. The new development will contribute to the local retail and accommodation landscape with its blend of commercial and residential facilities.
Resintech stated that the acceptance of these facilities is expected to increase the group’s gearing ratio for the financial year ending March 31, 2027 (FY2027). The company also clarified that the financing does not involve the issuance of new ordinary shares, therefore having no impact on its issued share capital or the shareholdings of its directors and major shareholders.
Board Approves Financing Terms
Resintech’s board of directors has evaluated the terms of the financing and concluded that its acceptance is in the best interest of the Resintech group. The company confirmed that no directors, major shareholders, or any connected persons have a direct or indirect interest in these facilities.
Furthermore, the financing arrangements are not subject to the approval of Resintech’s shareholders or any regulatory authorities. The project represents a strategic move for the subsidiary into the real estate development sector, leveraging the current market for both student accommodation and local retail services.
Questions & Answers
Q.What is the purpose of the RM41 million financing secured by Resintech’s subsidiary?
What is the purpose of the RM41 million financing secured by Resintech’s subsidiary?
The financing is intended to redeem four parcels of land in Selangor and to part-finance 80 percent of the construction cost for a new hostel and retail development.
Q.What will the proposed development by Johan Panglima (M) Sdn Bhd include?
What will the proposed development by Johan Panglima (M) Sdn Bhd include?
The development will feature 158 hostel units, four retail shops, a canteen, and other associated facilities.
Q.How will this financing impact Resintech Bhd’s financial position?
How will this financing impact Resintech Bhd’s financial position?
Resintech expects the financing facilities to increase the group’s gearing ratio for the financial year ending March 31, 2027. It will not affect the company’s issued share capital or shareholder structures.