Friday 24 May 2024
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KUALA LUMPUR (March 11): Malaysia Rail Link Sdn Bhd (MRL), a wholly-owned subsidiary of the Minister of Finance (Incorporated), has established its Islamic Commercial Papers and Islamic Medium Term Notes Programme of up to RM10.21 billion in nominal value, with an option to issue Sustainable and Development Goals (SDG) Sukuk.  

The Sukuk Murabahah programme will provide an opportunity for investors to participate in an initiative aimed at part financing for the construction of the East Coast Rail Link (ECRL) project, MRL said in a joint statement with East Coast Rail Link (ECRL) on Monday.    

It said the programme encompasses three revolving credit facilities designed in compliance with both conventional and Islamic finance principles from various local financial institutions and supported by the participation of 10 financial institutions.  

It added that the SDG Sukuk Framework has been assigned a “Gold” Impact Assessment by MARC Ratings Bhd.  

MRL chief executive officer Darwis Abdul Razak emphasises that the programme signifies the ongoing effort to incorporate Islamic finance into substantial infrastructure projects.  

“We are pleased that MRL’s SDG Sukuk also synergistically advances eco-conscious practices within the realm of finance and infrastructure development as well as cater to the distinct needs of both government and private stakeholders as well as across various sectors,” he added.

The ECRL is a joint venture project between Malaysia Rail Link and China Communications Construction (CCCC). The 665-km route stretches from Kota Bharu to Port Klang and features 59 tunnels, and will cost RM50.27 billion.

According to MRL, the project is financed by a combination of soft loans by the Export–Import Bank of China and Sukuk issuance by local financial institutions.  

“It is scheduled for completion in December 2026 and expected to link Kota Bharu to ITT (Integrated Transportation Terminal) Gombak in 4 hours as compared to 7 hours by road transport or more than 12 hours during festive seasons,” it added.

Edited ByLee Weng Khuen
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