JOHN KEELLS HOLDINGS PLC
The agreement formalising the facility was signed between the IFC and JKH on
The proceeds from the facility will primarily be utilised to fund the group's expansion of its supermarkets business, recent investments in hotels in the
The key features of the financing facility are as follows:
Rate basis: 6-month LIBOR plus margin of 380 basis points (based on the 6-month LIBOR as of date, the initial interest rate on the loan will be 4.21 per cent per annum)
Step-down pricing mechanism: A step-down pricing mechanism to a margin of 355 basis points by
Tenor: Ten-year tenor till
Grace period: Four years with capital repayments commencing in
Given the investment pipeline of the group, JKH has been exploring funding alternatives to further strengthen its balance sheet since late-2019. IFC has been a longstanding partner of JKH, and this facility will afford the group the flexibility and agility to fund its investments in an optimal manner, the statement said.
The facility provides additional support to the group's liquidity position considering the extended tenor and grace period before capital repayments commence.
'While the COVID-19 pandemic resulted in short-term impacts to JKH's businesses, the group is witnessing positive momentum at present and remains positive on the medium to long-term prospects for its businesses and related investment pipeline. The group believes that partnering with an internationally reputed financial institution such as the IFC, particularly at this juncture of time, is a vote of confidence for JKH and the country,' it said.
© Pakistan Press International, source
