S$10.5m loan from directors used for working capital needs: KTL Global

KTL Global said in response to SGX queries that the increase in loans from directors to S$10.5 million as at Sep 30, 2018 from S$1 million as at Jun 30, 2017 was mainly to finance working capital needs of the group.

The proceeds from the loans from directors were mainly used for repayment of bank borrowings, payments to suppliers and general operating working capital, said the firm.

KTL Global added that except for a loan of S$2 million which bears an interest of 1.5 per cent above UOB swap rate, the loans from directors were interest-free and repayable in full on a date agreed between the lender and the company.

The interest rate for the S$2 million loan is based on the interest rate payable by the director to obtain funding.