Report: Govt to issue debt papers worth RM43b to buy 15 highways

The government is planning to buy 15 highways for a total of RM43 billion through the issuance of debt papers to concessionaires.

(MMO) – English daily New Straits Times reported today that the government’s plan is to acquire PLUS Malaysia Sdn Bhd’s highways for RM30.8 billion, Projek Lintasan Kota Holdings Sdn Bhd (Prolintas) for RM3.1 billion, Gamuda Sdn Bhd for RM5.6 billion and IJM Corp Bhd for RM2.7 billion.

Once all parties have agreed with the value, Khazanah Nasional Bhd through a special purpose vehicle (SPV) will issue perpetual debt papers.

Paper A will be valued at RM30.1 billion while Paper B at RM12.7 billion.

“Khazanah Nasional Bhd will set up a special-purpose-vehicle called a highway trust, which will act on the government’s behalf to buy the concessions,” a source told the New Straits Times.

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