KUALA LUMPUR, Sept 7 (Bernama) -- P.A. Resources Bhd (PARB), through its wholly owned subsidiaries, has accepted additional banking facilities totalling RM255.45 million to support the group’s existing operations and the development of a new plant.
In a filing with Bursa Malaysia today, PARB said its wholly owned subsidiaries, P.A. Extrusion (M) Sdn Bhd (PAESB) and Professional Aluminium Smelting Sdn Bhd (PASSB), respectively, have accepted and executed separate letters of offer dated Aug 11, 2026 for the additional banking facilities.
It said PAESB has accepted additional conventional banking facilities of RM205.45 million granted by AmBank (M) Bhd, while PASSB secured additional Islamic banking facilities of RM50 million granted by AmBank Islamic Bhd.
On the rationale, PARB said the group had on July 14, 2026 announced the renewal of its supply agreement with First Solar for a contract value of about US$322.17 million (US$1=RM4.04) for the period from July 1, 2026 to Dec 31, 2027.
“This represents an increase of approximately US$90.27 million or 38.9 per cent, compared with the fourth renewal valued at US$231.9 million for the period from Jan 2, 2024 to July 1, 2025.
“It said the higher contract value is expected to increase the group’s production as well as working capital requirements,” it said.
Of the banking facilities, RM50 million will be used to support anticipated increases in working capital requirements arising from higher sales value and the group’s expansion plans through product and market diversification, with their utilisation expected to correspond with increased business activities and the resulting earnings potential.
Another RM65.45 million is to finance the construction of a new plant and acquisition of plant and machinery, while RM140.0 million is to fund the new plant’s working capital requirements, including purchase of raw materials, inventory holdings and financing on credit terms extended to customers, it added.
“The new plant is expected to increase the group’s monthly aluminium extrusion production capacity from about 3,500 tonnes to 8,500 tonnes, strengthening the group’s ability to fulfil the increase in customer orders and further products and market diversification strategies.
“Overall, the additional banking facilities will provide the group with the financial flexibility required to fulfil the renewed supply agreement, implement its capacity expansion plan and support anticipated business growth, while preserving its existing working capital resources and maintaining the group’s commitment to its dividend policy,” it said.
-- BERNAMA