Pharmaniaga Gets RM100mil Islamic Financing for New Facility

KUALA LUMPUR, May 4, 2005 Pharmaniaga Bhd (“Pharmaniaga”), one of the largest integrated healthcare companies in Malaysia, has obtained a RM100 million Islamic Financing Facility to part-finance the construction of a new products facility and for working capital.

The financing facility comprises two portions – an Islamic Medium Term Notes Programme (IMTN Programme) of up to RM60 million and an Islamic Commercial Papers Programme (ICP Programme) of up to RM40 million.

RHB Sakura Merchant Bankers Bhd (“RHB Sakura”) is the lead arranger and facility agent for both programmes. An agreement for the financing facility was signed between Pharmaniaga, RHB Sakura and Malaysian Trustees Berhad here today.

Signing on behalf of Pharmaniaga was its Managing Director, Encik Azhar Hussain, while RHB Sakura was represented by its Chairman, Encik Abdullah Mat Noh.

Encik Azhar said that the RM60 million IMTN programme would be used to part-finance the construction of the Small Volume Injectible Facility (“SVI Facility”) in Puchong, Selangor. Up to RM30 million of the financing facility would be utilised to refinance the Bridging Loan that had earlier been extended to Pharmaniaga by RHB Sakura for the same purpose.

“The RM40 million ICP Programme will be used to finance the working capital requirements of Pharmaniaga’s subsidiaries,” he added.

The IMTN Programme will carry a tenure of five years from the date of its first issuance, and the ICP Programme a tenure of seven years.

Rating Agency Malaysia Bhd (“RAM”) has assigned the IMTN Programme a long-term rating of AA2(s) and the ICP Programme a short-term rating of P1.

The construction of the SVI Facility will be undertaken by Pharmaniaga’s wholly-owned subsidiary, Pharmaniaga LifeScience Sdn Bhd, at an estimated construction cost of RM90 million. Apart from the IMTN Programme, the company will also use internally generated funds to part-finance the project.

The SVI Facility will produce a new and important dosage form or drug delivery method to enlarge Pharmaniaga Group’s existing product range, primarily sterile liquid formulations in vials and ampoules. The SVI Facility is expected to be operational by second quarter 2007. Future growth potential for these products is not only present in the Malaysian market but also within the region.