KUALA LUMPUR: Sarawak Consolidated Industries Bhd
(SCIB) and its wholly owned subsidiary SCIB Industrialised Building System Sdn Bhd have secured two Islamic banking facilities worth RM70 million from Small Medium Enterprise Development Bank Malaysia Bhd.
The banking facilities are to enhance financial operations and project execution capabilities.
The industrialised building systems specialist said the facilities included Kafalah (Bank Guarantee-i) facility valued at RM15 million that is designated for issuing performance guarantees.
SCIB said the Kafalah facility applies to contracts awarded by a diverse range of government entities that hold a minimum of 51 per cent shareholding by the government or its entities.
"The second facility, a Revolving Credit-i worth RM55 million, is designed to finance the working capital requirements associated with the contracts from the same types of awarding parties as Kafalah.
"This ensures SCIB maintains sufficient liquidity to manage and deliver projects efficiently, supporting the company's robust operational flow and enhancing its delivery capacity across various governmental and semi-governmental projects," it said in a statement today.
SCIB managing director Ku Chong Hong said securing these banking facilities marks a pivotal advancement in its financial strategy, enhancing its capacity to support larger projects and manage cash flow more effectively.
"This financial framework not only fortifies our balance sheet but also provides us with the agility to capitalise on emerging opportunities quickly and efficiently.
"We are committed to leveraging this new level of financial flexibility to drive sustainable growth and deliver enhanced value to our stakeholders," he said. - Bernama
