BPMB’S RM1.0 BILLION FINANCING TO LEKAS TO ENABLE AFFORDABLE CONNECTIVITY
Tuesday, 31 October 2023, Kuala Lumpur – Bank Pembangunan Malaysia Berhad (BPMB) today announced the granting of Tawarruq Asset Financing facilities totalling RM1.0 billion to Lebuhraya Kajang-Seremban Sdn Bhd (“LEKAS”).
The financing, exclusively provided by BPMB, aims to support the Malaysian government’s initiative to reduce the urban cost of living. LEKAS and the Government had previously embarked on a concession restructuring exercise which entailed a reduction in toll rates. The objective of this financing is to re-structure LEKAS debt obligations, to ensure the highway remains sustainable and affordable to travellers.
The 44.3-kilometer LEKAS highway plays a crucial role in enhancing connectivity between Kajang and Seremban, and the adjoining townships such as Semenyih, Pajam, Mantin, Setul, and Paroi. LEKAS, a well-established concessionaire responsible for managing the highway, has been serving the community since 2010.
Roni Abdulwahab, Group Chief Executive Officer of BPMB said, “As the nation’s premier development partner, we see investments in infrastructure such as LEKAS as crucial for Malaysia’s economic growth, in line with the Government’s MADANI aspirations. Our support for LEKAS reflects our purpose of delivering impact capital for national development.
In support of the growing population within greater Klang Valley, our funding for LEKAS will further contribute to the thriving economic development.” said Roni.
Wan Salwani Wan Yusoff, Chief Executive Officer of LEKAS said, "We are pleased to collaborate with BPMB on this important financing initiative. This funding marks a significant step towards achieving our shared vision of a more connected and sustainable future. With the reduction of toll rates, we further our commitment to easing the financial burdens of the communities we serve, supporting the Government’s initiative”.
LEKAS Highway has played a main significant role in improving daily commutes for approximately 100,000 vehicle users. Today, the highway proves to be a vital link connecting the Eastern Area of Kuala Lumpur (Ampang, Cheras, Kajang) and Seremban, Negeri Sembilan and eases congestion along the PLUS North-South Expressway and shortening travel time for commuters.
By decreasing the amount of time spent in traffic, the highway enhances accessibility between urban and suburban areas in the Greater Klang Valley, which facilitates further economic growth. Additionally, it also contributes to reducing carbon footprints and greenhouse gas (GHG) emissions.
ABOUT BANK PEMBANGUNAN MALAYSIA
Bank Pembangunan Malaysia Berhad (BPMB) was incorporated on 28 November 1973 as a development financial institution. This year BPMB celebrates its 50th anniversary of delivering impact capital for national development.
Owned by Minister of Finance (Incorporated), BPMB has been accorded the highest rating of ‘AAA’ by both RAM Rating Services Berhad and Malaysia Rating Corporation Berhad. It is -regulated and supervised by Bank Negara Malaysia under the Development Financial Institution Act 2002. With a Group Total Assets value of RM27.0 billion (as at 31 December 2022), the BPMB Group is well positioned to meet the financing and business development needs of Malaysian businesses.
LEKAS holds the concession for the 44.3 km Kajang Seremban Highway, starts at Kajang Selatan in Selangor and ends at Seremban / Paroi in Negeri Sembilan. There are seven interchanges along the highway at Kajang Selatan, Semenyih, Pajam, Mantin, Setul, Ampangan and Paroi. The Highway was fully completed in early August 2010, with tolling for the entire stretch taking effect on 21 September, 2010. The Third Supplemental Concession Agreement was signed on 30 December 2022 between the Government of Malaysia and the Company which involves the toll reduction and the extension of the concession period. « Back