Ekovest’s unit to issue RM3.64 billion sukuk for SPE project

PUTRAJAYA: Lebuhraya DUKE Fasa 3 Sdn Bhd is set to issue RM3.64 billion Sukuk Wakalah, Malaysia’s largest ringgit-denominated greenfield toll-road project financing, for its Setiawangsa-Pantai Expressway (SPE), formerly known as DutaUlu Klang Expressway (DUKE) Phase-3 project.

Datuk Seri Lim Keng Cheng, managing director of Ekovest Bhd, the parent company of Leburaya DUKE, said proceeds from the sukuk would be used for part of the RM3.9 billion construction cost of the 32.1kilometre (km) SPE project.

The total cost of the SPE development is estimated at RM5.05 billion, taking into consideration the debt service covering ratio within the construction.

“As part of the financing structure, Ekovest will inject RM850 million as equity into the project and this shows our confidence and commitment to deliver the best road infrastructure network in Kuala Lumpur.

“At peak hours, the highway can cater for about 300,000 cars per day,” he told reporters after the signing ceremony for the sukuk, witnessed by the Second Finance Minister Datuk Johari Abdul Ghani here, yesterday.

Lim said the government would inject RM560 million through the Reimbursable Interest Assistance (RIA) within a three-year period and Ekovest would pay back within eight years.

The agreement was inked among Lebuhraya DUKE, AmInvestment Bank Bhd, CIMB Investment Bhd, Maybank Investment Bhd and RHB Investment Bhd.

The Sukuk Wakalah is in nominal value based on the Shariah principle of Wakalah Bi Al-Istithmar and has been assigned a rating of AA-IS by Malaysian Rating Corporation Bhd.

Lim said the toll rate, based on Ekovest’s financial model, was expected to be at RM7 one-way throughout the 32.1km highway, which will comprise two toll plazas and five toll ramps.

Earlier, Johari said the SPE development would be the first Public- Private Partnership project to use the government’s RIA as part of its financing structure.

Johari said the implementation of the SPE project would generate a multiplier effect on the economy including creating more jobs in construction- related and supporting industries, as well as generating higher revenue to local government agencies through the exchange of land premium collection and assestment. — Bernama