Bina Puri seeks to restructure debt with Exim Bank

• “The escalation of the US$ against ringgit Malaysia and the increase of interest rates from 4% to 11% had warranted the company to negotiate a restructuring of the loan with Exim Bank,” Bina Puri said in a filing.

KUALA LUMPUR (Feb 6): Bina Puri Holdings Bhd (KL:BPURI) on Thursday said it is in the midst of restructuring its loan with Export-Import Bank of Malaysia Bhd (Exim Bank), following a winding-up petition from the bank on Tuesday.

“The escalation of the US$ against ringgit Malaysia and the increase of interest rates from 4% to 11% had warranted the company to negotiate a restructuring of the loan with Exim Bank,” Bina Puri said in a filing.

The loss-making property developer said it had taken a US$7.65 million (RM33.93 million) loan, with an initial interest rate of 4%. Throughout the loan tenure, the company had paid US$5.10 million, with an inclusive interest of US$2.35 million.

“Proposals for restructuring the loan were discussed with the bank (Exim Bank), and the bank had in principle agreed to the restructuring to be finalised no later than end of February 2025,” it said.

Bina Puri said that the payment temporarily ceased in March last year, pending the finalisation of the loan restructuring, while interest for the period will be capitalised in the principal sum.

It was also noted that the default in the payment is due to the ongoing discussion on loan restructuring.

“Hence, the company has delayed in making the announcement as the board believed that making any announcement regarding the default in payment would be premature,” it said.

It also clarified that any payment default will be cured, and the account with Exim Bank will be normalised upon the loan restructuring being approved. Nonetheless, once approved, Bina Puri shall adhere to the repayment schedule of the restructured loan.

The winding-up petition, meanwhile, is not expected to have any other legal implications from the default in payment as well on the company, as the discussions with the bank on the restructuring and repayment plan have reached an advanced stage for a term-out arrangement, it said.

“The proceedings of the winding-up petition are currently under discussion between the company and the bank, with the aim of reaching a mutually beneficial resolution,” it disclosed.

Shares in Bina Puri settled up half a sen or 1.64% at 31 sen on Thursday, giving the group a market capitalisation of RM249.85 million.

EdgeProp.my is currently on the lookout for writers and contributors to join our team. Please feel free to send your CV to [email protected] 

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!