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Kohat Cement to Invest Rs. 600 Million in Ultra Kraft Ltd

Kohat Cement Company Limited has decided to invest up to Rs. 600 million by way of short-term running finance of Ultra Kraft (Private) Limited (UKPL), an associated company, to meet its working capital requirements.

According to the notification issued to PSX, the decision of investment has been taken after approval of the board and then stakeholders alike in an extraordinary general meeting.

The investment will be made for a term of one year from April 15, 2022, at a mark-up rate of 1.50 percent 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 percent per annum on the unpaid amount.

The shareholders also resolved the issuance of a Corporate Guarantee for an amount of up to Rs. 400 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 favor 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 decided in the meeting 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.

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