Tuesday Dec 03, 2024
Tuesday Dec 03, 2024
Wednesday, 24 June 2020 00:25 - - {{hitsCtrl.values.hits}}
John Keells Holdings PLC (JKH) said yesterday that the long-term financing agreement with the International Finance Corporation (IFC) gives the conglomerate the agility to fund investments in an optimal manner.
In a disclosure to the Colombo Stock Exchange, JKH said given the investment pipeline of the Group, it has been exploring funding alternatives to further strengthen its balance sheet since late 2019.
“IFC has been a longstanding partner of JKH, and this facility will afford the Group the flexibility and agility to fund its investments in an optimal manner,” JKH said.
“The facility provides additional support to the Group’s liquidity position considering the extended tenor and grace period before capital repayments commence,” JKH added.
The $ 175 million 10 year facility is at 6-month LIBOR plus margin of 380 basis points. Based on the 6-month LIBOR as of date, the initial interest rate on the loan will be 4.21% per annum. It also has a step-down pricing mechanism to a margin of 355 basis points by March 2024.
Additionally there is a four year grace period with capital repayments commencing in December 2024.
“The proceeds from the facility will primarily be utilised to fund the Group’s expansion of its supermarkets business, recent investments in hotels in the Maldives and Sri Lanka and for general corporate investments,” JKH said.
While the COVID-19 pandemic resulted in short-term impacts to JKH’s businesses, the Group is witnessing positive momentum at present and remains positive on the medium to long-term prospects for its businesses and related investment pipeline.
The Group believes that partnering with an internationally reputed financial institution such as the IFC, particularly at this juncture of time, is a vote of confidence for JKH and the country.
