KUALA LUMPUR (July 20): ECM Libra Group Bhd (KL:ECM), through its indirect wholly-owned subsidiary Desaru Beachfront 2 Sdn Bhd (DB2SB), has accepted a term loan of up to RM120 million and revolving credit facilities of up to RM10 million (banking facilities) granted by RHB Bank Bhd (KL:RHBBANK) to part-finance the development of a proposed beachfront hotel and its general working capital requirements. 

In a filing with Bursa Malaysia, it said the proposed hotel will be built on a parcel of leasehold commercial land owned by DB2SB. 

The banking facilities would enable ECM and its subsidiaries to fund the project with a mix of debt and internal funds, and are in line with ECM’s strategy of expanding its hospitality portfolio, it said.

It also said that the banking facilities would not have any effect on the issued share capital and the substantial shareholders’ shareholding of ECM as the banking facilities do not involve the issuance of any new ordinary shares in ECM, and are not expected have any material effect on the net assets and net assets per share of the group for the financial year ending Dec 31, 2026.

The acceptance of the banking facilities is expected to increase the gearing ratio of the ECM group for the financial year ending Dec 31, 2026, it added. 

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