Etika International Holdings, the manufacturer and distributor of sweetened condensed milk, has signed syndicated financing facilities worth RM368 million ($157.7 million), with a consortium of three Malaysian financial institution groups including AmBank Group, EON Bank Group, Maybank Group and jointly lead arranged by AmInvestment Bank Group, Maybank Investment Bank Berhad and MIMB Investment Bank Berhad.

The RM368 million syndicated financing facilities are made up of RM363 million Islamic term financing and RM5 million conventional foreign exchange contract facility. Out of the RM368 million, RM159 million will be used for working capital, while the remaining balance will be used to refinance existing bank borrowings in Malaysia as well as to fund future capital expansion and merger and acquisition plans of the group.

For FY2009, Etika posted an increase in net profit of 52% to RM61.7 million. The group’s Dairies Division made up 68.6% of the group’s total revenue of RM600.6 million. Malaysia is still a dominant market for the group in FY2009, accounting for 55.9% or RM336 million of the group’s total revenue.