1.            INTRODUCTION

Reference is made to the Company’s announcement dated 30 November 2012 in respect of the above. The Board of Directors of BHB wishes to announce that the Company had on 31 March 2014 entered into an agreement with OCBC Al-Amin Bank Berhad to refinance the outstanding term financing agreement that the Company had with Standard Chartered Bank Malaysia Berhad.

The RM155 million Term Financing-i refinancing facility is based on the Shariah principle of Ijarah Muntahiah bi Al-Tamlik (“Term-i Facility”), and is structured as:

(a)          RM152 million to refinance the outstanding term financing facility with Standard Chartered Bank Malaysia Berhad; and

(b)          RM3 million to finance the Company’s working capital.

2.            RATIONALE FOR THE TERM-i FACILITY

This refinancing facility will result in an estimated interest cost savings of approximately RM5 million over the next three (3) financial years.

3.            EFFECTS OF THE TERM-i FACILITY

3.1          Issued and paid-up share capital

The Term-i Facility is not expected to have any effect on the issued and paid-up share capital of BHB for the financial year ending 31 December 2014.

3.2          Substantial shareholdings

The Term-i Facility is not expected to have any effect on the substantial shareholdings of BHB for the financial year ending 31 December 2014.

3.3          Net assets

The Term-i Facility is not expected to have any significant effect on the net assets of BHB for the financial year ending 31 December 2014.

3.4          Earnings per share

The Term-i Facility is expected to contribute positively to the earnings per share of BHB due to the expected interest cost savings.

3.5          Gearing

The Term-i Facility is not expected to have any effect on the gearing of BHB for the financial year ending 31 December 2014.

4.      RISK IN RELATION TO THE TERM-i FACILITY

           The Board of Directors of the Company does not envisage any specific risk to be associated with the acceptance of the Term-i Facility, apart for the finance costs.

5.            APPROVALS REQUIRED FOR THE TERM-i FACILITY

            The Term-i Facility is not subject to shareholders’ approval of the Company.

6.            INTEREST OF DIRECTORS, SUBSTANTIAL SHAREHOLDERS AND/OR PERSONS CONNECTED

None of the Directors, substantial shareholders of BHB and/or persons connected to them, as defined in the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, have any interest, whether direct or indirect, in the Term-i Facility.

7.            DIRECTORS’ RECOMMENDATION

           After considering all aspects of the Term-i Facility including but not limited to the rationale and financial effects, under the present circumstances, the Board of Directors of the Company is of the opinion that the Term-i Facility is in the best   interest of the Company.

This announcement is dated 1 April 2014.