Pinehill accepts RM200mil Islamic financing facility

Pinehill Pacific Bhd's (Pinepac) subsidiary, Pinehill Plantations (M) Sdn Bhd (PPM), has accepted an Islamic Financing Facility under the Term Financing-i Facility and the Overseas Project Financing Facility.

The Islamic Financing Facility is granted by Export-Import Bank of Malaysia Bhd for the total amount of RM200 million.

In a filing to Bursa Malaysia today, Pinepac said the purpose is to redeem the 100 per cent outstanding balance of existing PPM financing with Bank Kerjasama Rakyat Malaysia Bhd.

"It is also to part finance the working capital requirement of PPM's Indonesia subsidiaries to secure land tittles and to develop and manage the oil palm activities in Indonesia," Pinepac said.

It is also to construct a palm oil mill in Indonesia and to part finance PPM's acquisition of a 30 per cent stake in Pinehill Ventures Ltd, it added.