Putrajaya, 21 June 2017 – Perbadanan PR1MA Malaysia plans to raise RM5 billion via a combination of Sukuk programme and syndicated revolving credit facility to provide medium-term liquidity for its on-going project commitments.
Proceeds from this proposed exercise will be used to finance 89 of PR1MA’s executed projects nationwide, comprising 89,449 units of homes with an estimated gross development value (GDV) of over RM23 billion.
Maybank Investment Bank Berhad is the coordinating bank, facility agent as well as one of the joint lead arrangers/joint lead managers for the proposed fund raising exercise. Other joint lead arrangers/joint lead managers are AmInvestment Bank Berhad, CIMB Investment Bank Berhad and RHB Investment Bank Berhad. The respective banking groups are also the financiers for the syndicated revolving credit facility.
PR1MA’s Chief Executive Officer Dato’ Abdul Mutalib Alias said the decision to raise funds from external platform was made to ensure sustainability of PR1MA’s programme, being the single largest housing developer in Malaysia.
“The mandate to build 500,000 homes for the country’s middle-income group is indeed sizable and requires a huge working capital. For this programme to be sustainable, it is imperative that we look at other sources of funding, in addition to government grants,” he said after the signing ceremony between PR1MA and the participating banks on the Sukuk programme and syndicated revolving credit facility.
The Prime Minister YAB Dato’ Sri Najib Razak, Minister in the Prime Minister's Department YB Dato’ Sri Shahidan Kassim, Second Finance Minister II YB Datuk Seri Johari Abdul Ghani and Minister of Urban Wellbeing, Housing and Local Government YB Tan Sri Noh Haji Omar witnessed the signing ceremony.
Mutalib further said that PR1MA’s projects are on schedule and almost halfway through their target of 17,000 completed units by the end of this year.
PR1MA’s Members of Corporation has, to date, approved the development of 267,902 units of homes nationwide, of which, 139,393 units are in various stages of construction. A total of 9,791 units of PR1MA homes have been sold, to date, with an estimated sales value of RM2.36 billion.
“We have completed 8,475 units of homes and we are confident that the 17,000 target can be achieved,” he said.
To date, more than 1.42 million Malaysians have registered for PR1MA homes nationwide, of which 166,972 have applied to purchase PR1MA homes.