Kuala lumpur: P.A. Resources Bhd (PARB) has announced the acceptance of additional banking facilities amounting to RM255.45 million. These funds, secured through its wholly owned subsidiaries, are intended to bolster the group's current operations and facilitate the establishment of a new manufacturing plant.
According to BERNAMA News Agency, PARB disclosed in a filing with Bursa Malaysia that its subsidiaries, P.A. Extrusion (M) Sdn Bhd (PAESB) and Professional Aluminium Smelting Sdn Bhd (PASSB), have formalized separate letters of offer dated August 11, 2026, for these additional financial resources. Specifically, PAESB has secured RM205.45 million in conventional banking facilities from AmBank (M) Bhd, while PASSB has obtained RM50 million in Islamic banking facilities from AmBank Islamic Bhd.
The rationale behind this financial move is the renewal of PARB's supply agreement with First Solar, announced on July 14, 2026. This contract, valued at approximately US$322.17 million, spans from July 1, 2026, to December 31, 2027, representing a 38.9 percent increase over the previous renewal period's value of US$231.9 million from January 2, 2024, to July 1, 2025. The increased contract value is anticipated to raise the group's production and working capital needs.
Out of the total banking facilities, RM50 million will address the expected rise in working capital requirements due to higher sales and expansion plans through product and market diversification. This funding is aligned with increased business activity and potential earnings growth. Additionally, RM65.45 million is allocated for constructing a new plant and acquiring related machinery, while RM140 million is earmarked for the new plant's working capital, covering raw material purchases, inventory, and customer credit financing.
The new plant aims to boost the group's monthly aluminium extrusion production capacity from 3,500 tonnes to 8,500 tonnes. This expansion will enhance PARB's ability to meet increased customer orders and support its product and market diversification strategies. Overall, these banking facilities are expected to provide PARB with the financial flexibility necessary to fulfill its renewed supply agreement, implement capacity expansion plans, and support anticipated business growth, while preserving existing working capital and maintaining its dividend policy commitments.