The Board of Directors of Kossan Rubber Industries Bhd. (48166-W) (Kossan) wishes to announce that Kossan will execute a corporate guarantee of RM 60.0 million in favour of Sumitomo Mitsui Banking Corporation Malaysia Berhad in respect of a Term Loan of RM 60.0 million granted to Ideal Quality Sdn. Bhd. (404964-P) (IQ) a wholly owned subsidiary.
The said banking facility is for general corporate fundings and/or capital expenditures.
The said Corporate Guarantee will not have any significant effect on the earnings per share, net assets per share, share capital and substantial shareholders shareholdings in the Company for the current financial year ending 31 December 2015.
This announcement is dated 25 February 2015.