KUALA LUMPUR, April 19 ― The interest charges paid for intra-group loan (IGL) from Nestle Treasury Centre-Middle East and Africa Ltd (NTC-MEA) from April 2017 to March 2018 amounted to RM7.2 million, said Nestlé (M) Bhd.
In a filing to Bursa Malaysia, Nestlé said, its wholly-owned unit, Nestle Manufacturing (M) Sdn Bhd, had obtained an IGL of US$68 millon (RM264 million) from NTC-MEA for general corporate purposes.
The interest rate for the IGL would be 3-month US LIBOR+31bps, it said.
“The operational loan is necessary for the day-to-day operation of the group and is in line with manufacturing and distribution business,” it said.
Nestlé said the interest payment was made in the ordinary course of business on arm’s length basis and on normal commercial terms comparable to commercial interest rates for banking facilities of similar nature.
“The IGL will not have any effect on the issued and paid-up share capital and the major shareholders’ shareholdings of Nestlé or any material impact on the consolidated net assets per share and gearing as it replaces loan obtained from the local banks,” it said. ― Bernama
