Funding and interest rate risk. The Group may seek external financing to fund the obligations of the Management Contractor and/or the Contractor under Section 2.2 of this Announcement. The Group’s ability to secure sufficient external financing and the cost of such financing are dependent on various factors, some of which may not be within the control of the Group including general economic and capital market conditions, changes in interest rates, credit availability from banks or other lenders, any restrictions imposed by the Government and the political/socio-economic climate of Malaysia. There can be no assurance that sufficient financing on acceptable terms will be available to the Group. In addition, the Group could potentially be exposed to fluctuations in interest rates leading to higher borrowing cost which may adversely affect the Group’s results of operations and financial performance in the future as well as the Group’s ability to service its future loan repayment obligations. Nevertheless, the Group will continuously monitor and review the funding requirements of its projects as well as its gearing level, overall interest cost and cash flow position in determining the appropriate funding structure.
Funding and interest rate risk. Regardless of the Proposals and pending Project, the group’s ability to arrange for financing and the cost of such financing are dependent on numerous factors, including the general economic and capital market conditions, interest rates, credit availability from banks or other lenders, political, social and economic conditions in Malaysia. The group is of the view that the effect of the increase in Bank Negara Malaysia’s overnight policy rate which as of to-date stands at 3.00% is within market expectation. There can be no assurance that the necessary financing will be available in the amounts or on terms acceptable to the group. UEM Sunrise could potentially be exposed to fluctuation of interest rates leading to higher borrowing costs, which may affect UEM Sunrise’s future results of operations, financial performance and ability to service future loan repayment obligations. To mitigate these risks, the Company will continuously monitor and review its debt portfolio, which includes taking into consideration its gearing level, interest cost as well as cashflow requirement. It continues to exercise diligence to ensure that the group attains its optimal capital structure and manage its operations prudently and effectively.
Funding and interest rate risk. The Group may seek external financing to fund the obligations of the Management Contractor and/or the Contractor under Section 2.2 of this Announcement, and/or the obligations of the Employer under Section 2.3 of this Announcement. The Group’s ability to secure sufficient external financing and the cost of such financing are dependent on various factors, some of which may not be within the control of the Group including general economic and capital market conditions, changes in interest rates, credit availability from banks or other lenders, any restrictions imposed by the Government of Malaysia and the political/socio-economic climate of Malaysia. There can be no assurance that sufficient financing on acceptable terms will be available to the Group. In addition, the Group could potentially be exposed to fluctuations in interest rates leading to higher borrowing cost which may adversely affect the Group’s results of operations and financial performance in the future as well as the Group’s ability to service its future loan repayment obligations. Nevertheless, the Group will continuously monitor and review the funding requirements of its projects as well as its gearing level, overall interest cost and cash flow position in determining the appropriate funding structure.
