KUALA LUMPUR: Sarawak Consolidated Industries Bhd's (SCIB) wholly-owned subsidiary, SCIB Concrete Manufacturing Sdn Bhd, has accepted Islamic banking facilities totalling RM48 million from Affin Islamic Bank Bhd.

In a filing with Bursa Malaysia, SCIB said that the first facility is a Tawarruq Term Financing-i of RM27 million, intended to redeem a two-storey office building with a spun piles factory and another two-storey office with a concrete roofing tiles factory in the Muara Tebas Land District, Sarawak, from RHB Bank Bhd.

It said the remaining amount would be used as working capital, with a tenure of 180 months.

The second facility is an RM8 million Tawarruq Cash Line-i for working capital requirements, with a tenure of 120 months and subject to annual review.

Additionally, the Islamic Composite Tradeline-i Facilities, worth RM13 million, will provide SCIB with Shariah-compliant financing for the purchase or import of business-related goods and raw materials, both domestically and internationally, with a tenure of 180 days.

"This financing applies to transactions under Letters of Credit-i, Inward Bills for Collection, Open Account, and other collection methods involving both residents and non-residents," SCIB said.

Despite the possibility of fluctuation in the bank's Base Financing Rate and Cost of Fund, the facilities are not expected to have any material effect on the earnings per share, gearing and net assets per share of the company for the financial year ending June 30, 2025, it said.

It added that to mitigate the identified risk factors, SCIB is practising prudent financial management to ensure sufficient liquidity to satisfy the obligations to the bank.