KUALA LUMPUR (July 18): Sarawak Consolidated Industries Bhd (KL:SCIB) said  it has secured Islamic banking facilities worth RM70 million from SME Bank.

It includes a kalafah (bank guarantee) facility of RM15 million that is designated for issuing performance guarantees, the company said in a bourse filing on Thursday

This facility, it said, is applicable to contracts awarded by entities such as the government, government-linked companies and government-linked investment companies.

SCIB said the second facility is a revolving credit worth RM55 million designed to finance working capital requirements associated with contracts from the same types of awarding parties as kalafah.

The company said the banking facilities will help ensure that it maintains sufficient liquidity to manage and deliver projects efficiently, as well as support the company's operational flow and enhance its delivery capacity across various governmental and semi-governmental projects.

“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," said SCIB managing director Ku Chong Hong.

Shares of SCIB finished half sen or 1.75% lower at 28 sen, valuing the company at RM187.74 million. The counter has fallen 70% year-to-date.