The Star – Bank Pembangunan grants RM2.7bil tawarruq asset financing facilities to Prolintas Managers
KUALA LUMPUR, 11 January 2024
Bank Pembangunan Malaysia Bhd has granted tawarruq asset financing facilities totalling RM2.7 billion to Prolintas Managers Sdn Bhd, a wholly-owned company of Projek Lintasan Kota Holdings Sdn Bhd (Prolintas).
This financing would serve as a crucial economic driver to assist Prolintas group in its comprehensive restructuring exercise involving four of its concessions, namely Ampang-Kuala Lumpur Elevated Highway, Guthrie Corridor Expressway, Lebuhraya Kemuning-Shah Alam and Kajang Dispersal Link Expressway, Bank Pembangunan and Prolintas said in a joint statement today.
Bank Pembangunan group chief executive officer (GCEO) Roni Abdulwahab said the partnership with Prolintas exemplifies the bank’s commitment to delivering impact capital for national development and its counter-cyclical role in bolstering long-term sustainable infrastructure investment.
"Given their integral role in the Kuala Lumpur outer ring road system, these highways play a crucial part in linking communities to satellite cities and economic hubs within the Klang Valley,” he said.
Prolintas GCEO Datuk Mohammad Azlan Abdullah said the group is committed to providing the best highway service.
"The financing from Bank Pembangunan strengthens our ability to facilitate capital economic development, restructure our debt while continuing to offer enhanced urban connectivity and realising our mission of becoming the commuters’ route of choice,” he said.
According to the statement, Prolintas has embarked on a concession restructuring initiative to ensure the sustainability and affordability of the highway, with lower toll rates to the users.
"Prolintas’s successful restructuring and years of planning by investing in the right areas, with an utmost priority on safety and technology, had assisted it in operational efficiency, thus allowing it to maintain sustainable investment return and good yield to investors after the toll rates reduction,” it added.
As a note, Bank Pembangunan’s tawarruq asset financing is an Islamic term financing facility offered to finance asset acquisition such as land, buildings, plants, machinery, equipment, vessels and others. - Bernama