Catalist-listed Koyo International 5OC has announced that its executive director, Foo Suay Lun, has entered into a loan agreement with the group’s wholly-owned subsidiary, Koyo Engineering (S.E. Asia) Pte Ltd.
According to the loan agreement, dated Sept 12, Foo has agreed to extend an interest-bearing capital loan of up to $3 million to the subsidiary.
The loan repayment is set to be repaid in full after a one-year period from Sept 12.
In a Sept 12 bourse filing, the group states that interest is chargeable at 1.5% per annum above the cost of funds of an existing commercial bank, in line with the commercial bank’s letter of offer to the subsidiary.
The current interest rate for the loan as at Sept 12 is 5.20%.
Foo, the brother of Foo Suay Wei, managing director and CEO of Koyo International, owns 100% of Salix Capital Pte Ltd. He currently holds 49,449,500 ordinary shares representing 26.05% of the Koyo International’s issued and paid up share capital as of Sept 12.
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Shares in Koyo International closed 0.2 cents higher, or up 4.44%, at 4.7 cents on Sept 12.
