Ekovest subsidiary issues RM2.3b Sukuk for DUKE highway

KUALA LUMPUR: Ekovest Bhd’s subsidiary Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi) has issued RM2.30bil in nominal value Sukuk Musharakah and RM180mil in nominal value Junior Bonds.
It said on Monday the proceeds would be used to redeem Kesturi’s existing RM820mil nominal value Islamic medium term notes and existing RM50mil nominal value redeemable secured junior bonds.
Ekovest said the proceeds would also be used to fund the initial deposit in the finance service reserve account maintained under the Sukuk Programme.
The funds would also be used to part-finance the construction costs, development costs, financing costs, fees and expenses in relation to the Duta-Ulu Kelang Expressway (DUKE)  Phase-2.
The expansion of the DUKE highway was pursuant to the supplemental concession agreement dated Dec 3, 2012 between Kesturi and the government of Malaysia.
The Sukuk Programme and Junior Bonds were rated AA-IS and A- with stable outlook respectively by Malaysian Rating Corporation Bhd.
CIMB Investment Bank Bhd is the sole principal adviser, lead arranger and lead manager for the Sukuk Programme and Junior Bonds.