Meta Bright secures RM28m financing from AmBank for strategic expansion
THE Australian subsidiary of property and hospitality-centric group Meta Bright Group Bhd (formerly Eastland Equity Bhd) has secured financing facilities totalling RM28 mil from AmBank (M) Bhd.
The funding initiative is poised to expand its wholly owned subsidiary Meta Bright Sdn Bhd’s business operations while solidifying its relationship with AmBank.
This is itself a testament to Meta Bright’s capability to secure significant banking support within just two years, a reflection of the company’s successful turnaround and robust growth trajectory.
This financing aligns with Meta Bright’s ambitious growth strategy, particularly in enhancing its capabilities within the equipment leasing sector linked to its recent expansion into Australia.
The funds will be channelled to purchasing high-value equipment for Meta Bright Australia Pty Ltd which has recently sealed the third leasing contract with Mt Cuthbert Resources Pty Ltd (MCR), a move set to solidify MBGB’s presence in the international market and to ensure a steady stream of recurring income, estimated at A$222,950 (RM691,657.78) a month.
“Obtaining these facilities from AmBank within such a short period is not only a milestone for Meta Bright but also a strong endorsement of our business model and strategic direction,” commented Meta Bright’s executive director (corporate and strategic planning) Derek Phang Kiew Lim.
Derek Phang Kiew Lim
“This financial partnership is pivotal as it supports our next phase of growth while strengthens our relationship with AmBank, hence setting a solid foundation for future collaborative opportunities.”
The financial facilities include:
Term loan 1: Amounting to RM25.5 mil which is allocated for the purchase of plant and machinery to enhance operational capabilities.
Term loan 2: Amounting to RM3 mil which is designed to finance life insurance premiums for the company’s directors, safeguarding corporate governance and leadership continuity.
Uncommitted foreign exchange contract facilities: To facilitate efficient international currency transactions by supporting Meta Bright’s global operations.
“Through this strategic financial support, Meta Bright is set to significantly boost its capacity to manage large-scale projects while enhancing its offerings in the highly competitive mining equipment leasing market,” enthused Phang.
“We are particularly focused on our operations in Australia where we see great potential due to the robust growth of the mining sector.”
At the close of today’s trading, Meta Bright was down 0.5 sen or 3.13% to 714,900 shares, thus valuing the company at RM388 mil. – April 29, 2024