KUCHING: Zecon Berhad (Zecon) has confirmed its acceptance of RM851.94mil Tawarruq Asset Financing Facilities from Bank Pembangunan Malaysia Berhad (BPMB) through its subsidiary Zecon Medicare Sdn Bhd and sub-subsidiary ServeCo Sdn Bhd.
The leading engineering and construction solutions provider received the Letter of Offer from BPMB on Feb 9.
“Out of the total amount, RM616.94mil is allocated to Zecon Medicare, the 30-year facilities and maintenance concessionaire of Hospital Pakar Kanak-Kanak Universiti Kebangsaan Malaysia (HPKK).
“The HPKK Project, consisting of 243 beds and a 54-room hotel, was completed in December 2020,” according to a Zecon press release.
The remaining RM235.0mil has been granted to ServeCo Sdn Bhd, presently holding a 25-year contract for asset management services for HPKK.
“The proceeds will be utilised to fully settle the group’s existing facilities with respective financial institutions. Any remaining balance, upon approval, will be allocated for the group’s working capital.
“Both facilities have a tenure of up to 20 years from the date of the first drawdown. While the facilities will result in a marginal increase in the group’s gearing ratio, they are expected to have a positive impact on the Group’s current ratio.”
