Funding Risk. As set out in Section 2.3 of this announcement, Xxxxxx will raise funding for the project development either through debt or/and equity. Bertam Group‟s ability to raise funds through debt or equity financing and the cost of such fund raisings are dependent on numerous factors, including general economic and capital market conditions, interest rates, credit availability from banks or other lenders, investors‟ confidence in Bertam Group or any restrictions imposed by the Malaysian government including political, social and economic conditions in Malaysia. There can be no assurance that the necessary fund raising will be available in amounts or on terms acceptable to Bertam. In addition, the Group could potentially be exposed to fluctuations in interest rates on such external fund raising raised, leading to higher borrowing costs or cost of equity which may adversely affect Bertam Group‟s future results of operations and financial performance as well as the Group‟s ability to service future loan repayment obligations. Nevertheless, Bertam shall continuously monitor and review its debt portfolio, which includes taking into consideration its group gearing level, interest or equity costs as well as cash flows in achieving and maintaining an optimal capital structure.
Funding Risk. The Group may seek external financing to fund the remaining Proprietor’s Entitlement and/or the Development. The Group’s ability to arrange for external financing and the cost of such financing are dependent on numerous factors, including general economic and capital market conditions, interest rates, credit availability from banks or other lenders, investors’ confidence in the Group, restrictions imposed by the Malaysian Government as well as political, social and economic conditions in Malaysia. Notwithstanding that the Group is allowed to charge the Tampin Land for securing financing for the Development upon the release of the First Payment to Penmaland and the discharge of the Existing Charge by Penmaland, there can be no assurance that the necessary financing will be available in amounts or on terms acceptable to the Group. In addition, the Group could potentially be exposed to fluctuations in interest rates on such external financing obtained, leading to higher borrowing costs which may adversely affect the Group’s future results of operations and financial performance as well as the Group’s ability to service future loan repayment obligations. Nevertheless, the Group will continuously monitor and review its debt portfolio, which includes taking into consideration its gearing level, interest costs as well as cash flows in achieving an overall optimal capital structure.
