KUALA LUMPUR, 9 February 2024

Zecon Bhd said it had accepted a combined total of RM851.94 million in Tawarruq Asset Financing Facilities from Bank Pembangunan Malaysia Bhd (BPMB). 

The letter of offer from BPMB was received on Feb 9, 2024.

Zecon said that RM616.94 was for its subsidiary, Zecon Medicare Sdn Bhd, which is the 30-year facilities and maintenance concessionaire of Hospital Pakar Kanak-Kanak Universiti Kebangsaan Malaysia (HPKK).

The RM606 million HPKK project, which comprises 243 beds and a 54-room hotel, was completed in December 2020.

The balance of RM235 million was granted to its sub-subsidiary ServeCo Sdn Bhd, which presently holds a 25 year asset management services contract for HPKK. 

Zecon said that a bulk of the proceeds will be utilised to fully settle its existing facilities with the respective banks and the balance for working capital upon approval. 

Both facilities have a tenure of up to 20 years from the date of the first drawdown.

The facilities will result in a marginal increase in the gearing ratio, but it will have a positive impact on its current ratio, it said in a statement.