Credit Memo (Subject: Commercial Banking)

NESTLE (MALAYSIA) BERHAD

EXISTING EXPOSURE

A. Exposure:

B. Protection:

C. Exposure Other Banks: pls help answer a. b. c. above, thks!

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Sample Answer

AUTOMOBILE MANUFACTURING (M) SDN BHD AMM II EXISTING EXPOSURE A. Exposure: Xiamen Bank Product/Facility Type Fixed Loan Exposure MYR10,000,000 Maturity 31.07.20 B. Protection: Xiamen Bank 1. Corporate guarantee from Automotive Corporation (M) Sdn Bhd. 2. AMM to maintain a maximum debt to equity ratio of 2 times commencing 6 months from drawdown and 1.5 times for the period commencing one year from drawdown. 3. AMM to maintain a minimum debt cover ratio of 1.2 times in the first 2 years from drawdown and 1.5 times thereafter. 4. ACM to maintain a maximum debt to equity ratio of 0.4 times commencing 6 months from drawdown. 5. Negative pledge on AMMs and ACMs present and future assets. 6. Pari passu ranking with all other creditors of AMM and ACM. C. Exposure Other Banks: MYR15,000,000 Fixed loan with HSBC