KNM To Issue US$80 Mln Bonds In Thailand By December

KUALA LUMPUR, Sept 27 (Bernama) -- KNM Group Bhd will issue US$80 million (US$1 = RM4.12) bonds in Thailand by December this year to provide a foreign currency lending to Impress Ethanol Co Ltd (IEL). In a filing to Bursa Malaysia (Malaysia's Stock Exchange) Monday, KNM said, the costs for the bond issuance, which was guaranteed by Asian Development Bank's trust fund, Credit Guarantee and Investment Facility, was estimated at US$266,537 (RM1.1 million). "The interest payments shall be dependent on the final coupon rates to be fixed," it said. It said United Overseas Bank (M) Bhd was mandated as the principal adviser to handle the bonds issuance. The downstream oil and gas player said IEL will use the proceeds from the proposed bonds, for among others, finance future expansion and working capital expenses for its bio-ethanol plants. KNM said its unit, KNM Renewable Energy Sdn Bhd, had on May 2016 completed the acquisition of the entire equity interest in Asia Bio-Fuels Ltd and Asia Biofuels II Ltd (ABL Group). Upon completion, the ABL Group will own a combined 72 per cent equity interest in IEL and a 49 per cent equity interest in Impress Farming Co Ltd, it said. "Currently, IEL is constructing phase one of its bio-ethanol plant with a production capacity of 200,000 litres ethanol per day. "The construction of phase two for an additional 200,000 litres ethanol per day is expected to commence by the first half of 2017 due to the favourable ethanol market demand in Thailand," KNM said. -- BERNAMA