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Malaysia's Ekovest will issue RM3.64 billion sukuk to finance highway project

The company will issue a RM3.64 billion sukuk to part finance the Setiawangsa-Pantai Expressway project.

“As part of the financing structure, Ekovest will inject RM850 million as equity into the project and this shows our commitment to deliver the best road infrastructure network in Kuala Lumpur,” said Ekovest managing director Datuk Seri Lim Keng Cheng at the signing ceremony.

He said the total cost for the highway was RM5.05 billion.

An agreement was inked  between Ekovest’s unit, Lebuhraya Duke Fasa 3 Sdn Bhd, with principal adviser / lead arranger AmInvestment Bank Bhd and joint lead managers / joint bookrunners CIMB Investment Bank Bhd, Maybank Investment Bank Bhd and RHB Investment Bank Bhd.

Also present were Second Finance Minister Datuk Johari Abdul Ghani and Ekovest executive chairman Tan Sri Lim Kang Hoo.

Johari said the proposed issuance of sukuk wakalah would be among the largest for a new highway construction project. At “AA-”, it was also among the highest rated sukuk so far this year.

“It will also be the first public-private partnership project to use the government’s reimbursable interest assistance as part of its financing structure.”

The sukuk wakalah has been assigned “AA-IS” by Malaysian Rating Corp Bhd.

The proceeds will be used for the design, construction, maintenance, operation and management of the 32.1km SPE.

The SPE will link the Middle Ring Road 2 at Universiti Tunku Abdul Rahman to the  Federal Highway / Kerinchi Link.

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