Tuesday, October 18, 2011

Bernama:SYABAS Signs RM110 Million Government Loan

KUALA LUMPUR, Oct 17 (Bernama) -- Puncak Niaga Holdings Bhd's 70 per cent owned subsidiary, Syarikat Bekalan Air Selangor Sdn Bhd, has signed a RM110 million loan facility agreement and deed of assignment with the government.

The company said the facility would be used to finance capital expenditure work for old pipe replacement in 14 critical areas in Selangor, Kuala Lumpur and Putrajaya for RM95 million.

The balance will be used to upgrade a water supply system to move 65 million litres per day of clean water from the Bernam River Headwork Reservoir in Sabak Bernam, it said in a circular to Bursa Malaysia.

The disbursement of the loan will increase the borrowing level of Syabas and Puncak Group but the loan is not expected to have any material effect on its gearing.

The loan tenure is for 20 years, the company said.-- BERNAMA

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