SCIB Secures RM70 Million in Banking Facilities

Enhancing Financial Agility for Operational Excellence and Growth

KUCHING, 18 JULY 2024 – Industrialised building systems specialist, Sarawak Consolidated Industries Berhad ("SCIB" or the "Company"), along with its wholly-owned subsidiary SCIB Industrialised Building System Sdn. Bhd.(“SIBS”) is pleased announce the securement of Islamic banking facilities amounting to RM70 million. These facilities have been provided by Small Medium Enterprise Development Bank Malaysia Berhad ("SME Bank" or "the Bank"), highlighting the Bank's confidence in SIBS's business model and growth trajectory.

SCIB has structured two major facilities from the Bank to enhance its financial operations and project execution capabilities. The first, a Kafalah (Bank Guarantee-i) facility (‘Kalafah”) valued at RM15 million, is designated for issuing performance guarantees. This facility is applicable to contracts awarded by a diverse range of entities including Federal Government Ministries, Departments, or Agencies; State Government Bodies, Agencies, or Companies; Statutory Bodies or Other Semi-Government Agencies; as well as Government Linked Companies (GLCs) and their subsidiaries, and Government Link Investment Companies (GLICs) and their subsidiaries, provided these entities hold a minimum of 51% 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 Kalafah. 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.

Mr. Ku Chong Hong, Managing Director of SCIB, commented on the new facilities “Securing these banking facilities marks a pivotal advancement in our financial strategy, enhancing our 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."

These facilities are expected to bolster SCIB's 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.

As at 5:00 P.M. 18 July 2024, the share price of SCIB closed at RM0.280, reflecting a market capitalisation of RM184.4 million.