26. BANK BORROWINGS (CONTINUED) The Group bank borrowings are as follows: (Continued) a) Term loan I (Continued) The Group entered into two additional banking facilities amounting to $6,000,000 and $10,000,000 on 31 January 2023 (revised on 6 July 2023) and 6 July 2023, which can be drawn down based on the Group’s financing requirements. The facilities are revolving short term loan meant for financing the building construction projects, which the limits are subjected to a step up/down schedule and are repayable by 31 August 2025 and 1 February 2026. The loans carry an interest of 1.5% per annum over the Bank’s Cost of Funds as determined by the Bank on the day of transaction. The loans are secured by: (i) a charge over the receivables of construction contract, including charge on non-checking account for the specific property development projects; and (ii) the corporate guarantee provided by the Company. As at the end of the reporting period, the outstanding borrowing amounts to $6,000,000 (2024: $8,000,000). The Group entered into an additional banking facility amounting to $18,000,000 on 20 December 2024, which can be drawn down based on the Group’s financing requirements. The facility is Projects Trust Receipts meant for financing the building construction project, which the limits are subjected to a step up/down schedule and are repayable by 31 July 2026. The loans carry an interest of 1.5% per annum over the Bank’s Cost of Funds as determined by the Bank on the day of transaction. The loans are secured by: (i) a charge over the Contracts and Contract proceeds & first Fixed Charge over account in respect of Project; and (ii) the corporate guarantee provided by the Company. As at the end of the reporting period, the outstanding borrowing amounts to $2,861,000 (2024: $Nil). b) Term loan II The Group entered into a banking facility amount to $2,000,000 on 9 April 2020. The facility is a temporary bridging loan under the Enterprise Financing Scheme for working capital requirements. The loan carries an interest at 2.75% (2024: 2.75%) per annum and is repayable over 60 monthly instalments. The loan is secured by the corporate guarantee provided by the Company. As at the end of reporting period, the outstanding borrowings amounted to $Nil (2024: $432,000), comprising of both current and non-current loan amount of $Nil (2024: $432,000) and $Nil (2024: $Nil) respectively. The Group is up to date with the scheduled repayments of the term loans and does not consider it probable that the banks will exercise its discretion to demand repayment for so long as the Group continues to meet the requirements. Further details of the Group’s management of liquidity risk are set out in Note 34 to the financial statements. Management estimates that the carrying amounts of the Group’s borrowings approximate their fair values as these borrowings are at floating interest rates and repriced regularly. Undrawn banking and credit facilities As at 30 September 2025, the Group has undrawn banking and credit facilities of $8.4 million (2024: $13.5 million) in respect of which all conditions precedent had been met. ANNUAL REPORT 2025 KEONG HONG HOLDINGS LIMITED 111 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2025
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