Country View secures RM31m Islamic financing from AmBank Islamic for working capital

-A +A

KUALA LUMPUR (May 4): Country View Bhd has accepted RM31 million in Islamic financing from AmBank Islamic Bhd (AmBank Islamic).

The property developer said its wholly-owned subsidiary Country View Resources Sdn Bhd (CVR) would redeem RM22 million from the Murabahah Tawarruq Revolving Credit-I (RC-i) facility for working capital purposes.

There will also be a RM9 million bank guarantee, the group said in a stock exchange filing.

It added that the financing will be secured, among others, against an Open All Monies Facilities Agreement to be entered into between CVR and AmBank Islamic and CVR’s commercial and affordable residential properties in Pulai, Johor.

Country View also announced that CVR has accepted the renewal of existing banking facilities and a new banking facility from Hong Leong Bank Bhd.

It signed up for an RM8 million overdraft facility from Hong Leong, while maintaining an RM10 million fixed-term loan (FTL) and RM1.25 million revolving credit facility (RC).

With this, Country View’s new financing limit from Hong Leong stands at RM19.25 million, up from RM11.25 million previously.

To secure the additional RM8 million, the group will extend the first party legal charge over 21 shop lots at the One Sentral serviced apartment in Johor Bahru as part of its collateral, with a portion of the rental income also being treated as collateral.

As with its financing with AmBank Islamic, Country View will issue a corporate guarantee for CVR’s loans with Hong Leong Bank.

Shares in Country View were last traded at RM1 per share, giving the group a market capitalisation of RM100 million.