Bursa
Announcements

We refer to the announcement dated 18 July 2016 (“Announcement”). Unless otherwise stated, all definitions and terms used herein shall have the same meaning as set out in the Announcement.

The Board of Directors of Ekovest Berhad is pleased to announce that the issuance of the Sukuk Wakalah of RM3.64 billion in nominal value by our wholly-owned subsidiary, Lebuhraya DUKE Fasa 3 Sdn Bhd (“LDF3”), has been completed today.

The Sukuk Wakalah has been assigned a rating of AA-IS by Malaysian Rating Corporation Berhad (“MARC”) and shall have tenures of up to twenty three (23) years from the date of issuance. The proceeds from the Sukuk Wakalah shall be utilised by LDF3 for the following Shariah-compliant purposes:-

1. Part-finance all costs associated with the development, design and construction of the proposed Setiawangsa-Pantai Expressway (formerly known as the DUKE Phase 3) (“DUKE Phase 3”) pursuant to the concession agreement dated 11 January 2016;
2. Profit payments under the Sukuk Wakalah and other amounts due and payable in relation to the Sukuk Wakalah during the construction period of the DUKE Phase 3;
3. Deposits into the finance service reserve account;
4. Payment of fees and expenses in relation to the Sukuk Wakalah; and
5. The balance, if any, shall be utilised to meet the Shariah-compliant general working capital requirements of LDF3.

As part of the conditions of the Sukuk Wakalah, Ekovest Berhad as the ultimate shareholder of LDF3, has provided an undertaking to cover any costs overruns and/or the financing costs incurred during the period of delay in the construction of the Expressway, by depositing funds into a designated account and/or by procuring one or more irrevocable and unconditional standby letter(s) of credit and/or bank guarantee(s) equivalent to RM184.5 million within eighteen (18) months from the issuance date. Funds in the designated account will be utilised to meet any cost overruns and to meet financing costs in the event of delays in the completion of the Expressway. Any balance remaining in the designated account after the construction completion date shall be remitted to Ekovest Berhad. 

This announcement is dated 23 August 2016.