KUALA LUMPUR: Sarawak Consolidated Industries Bhd (SCIB) and its wholly-owned SCIB Industrialised Building System Sdn Bhd have secured an Islamic banking facilities worth RM70 million from SME Bank.
In a statement today, SCIB said it has structured two major facilities from the bank to enhance its financial operations and project execution capabilities.
The first one is RM15 million Kafalah facility that is designated for issuing performance guarantees.
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 Kalafah.
SCIB said the financing ensures it 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.
Managing director Ku Chong Hong said the new facilities marks a pivotal advancement in SCIB's financial strategy, enhancing the 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 in the statement.
SCIB expects the facilities to bolster its financial stability and agility, enabling the company to maintain its leadership in the construction and infrastructure sectors without affecting its share capital or shareholder structure.
The stock closed 1.8 per cent or half sen lower at 28 sen for a market capitalisation of RM184.4 million today.