Hextar accepts additional Islamic financing from Al Rajhi

By NUR HAZIQAH A MALEK / Pic source hextarglobal.com

HEXTAR Global Bhd has accepted and executed an additional Islamic financing facility worth RM45 million from Al Rajhi Banking and Investment Corp (M) Bhd in the form of Structured Commodity Financing-i (SCF i-2). 

The agrochemical company said the Islamic financing facility comprising SCF i-1 and SCF i-2 in the aggregate amount granted by the bank totals to RM75 million, according to an exchange filing last Friday. 

“The additional facility shall be utilised for the purpose of the company’s Shariah-compliant business requirements as capital requirement of the company and to be allowed for third party utilisation by the following operating companies and subsidiaries within the Hextar Group, namely Hextar Chemicals Sdn Bhd, Halex (M) Sdn Bhd and Halex Woolton (M) Sdn Bhd,” the group said. 

It added that the additional facility shall be secured by way of corporate guarantee by Hextar Chemicals. 

The facility would not have any effect on the issued share capital and shareholdings of the shareholders of the group, nor any material effect on the audited consolidated net asset and net asset per share and the company’s earnings and earnings per share. 

However, the group’s consolidated gearing is expected to increase from 0.29 times to 0.52 times in the event the facility is fully drawn down.