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Kohat Cement to invest Rs600mn in Ultra Kraft

April 14, 2022 (MLN): The shareholders of Kohat Cement Company Limited (PSX: KOHC) have resolved to invest up to Rs600 million by way of short-term running finance of in Ultra Kraft (Private) Limited (UKPL), an associated company, to meet its working capital requirements, the company filing on PSX showed today.

The aforesaid investment will be made for a term of one year from April 15, 2022, at a mark-up rate of 1.50% above three months KIBOR or at the average borrowing cost of the company which shall be paid by UKPL within fifteen days of the end of each quarter. 

The non-payment of markup within the stipulated time period shall entail a further mark-up/penalty at the rate of 5% per annum on the unpaid amount.

The shareholders also resolved the issuance of a Corporate Guarantee for an amount of up to Rs400 million for a period of seven years from the date of its issuance along with lien/charge/mortgage on immovable property of the company, in favour of the National Bank of Pakistan (NBP) to secure long term financial assistance to be extended by NBP to Ultra Kraft (Private) Limited.

It was further resolved that commission shall be charged by the company at a rate of 0.12% per quarter or at the average commission charged to the Company by the commercial banks on similar credit facilities, whichever is higher, which shall be recovered quarterly in arrears, within 15 days of the close of each quarter and non-payment of commission within stipulated time period shall entail a further commission/penalty at the rate of 0.05% per quarter.

Copyright Mettis Link News

Posted on: 2022-04-14T13:15:46+05:00

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