PR1MA Signs Agreement With Banks For RM5 Bln Working Capital

Last update: 21/06/2017

PUTRAJAYA, June 21 (Bernama) -- Perbadanan PR1MA Malaysia has signed an agreement with four banks to raise RM5 billion through a combination of a sukuk programme and revolving credit facility, to be used as a medium-term credit facility to support its commitment to 89 PR1MA projects.

The agreement was signed by Maybank Group President and Chief Executive Officer Datuk Abdul Farid Alias, CIMB Group Chief Executive Tengku Datuk Seri Zafrul Aziz, AmBank Group Chief Executive Officer Datuk Sulaiman Mohd Tahir and RHB Banking Group Managing Director, Datuk Khairussaleh Ramli, witnessed by Prime Minister Datuk Seri Najib Tun Razak here, today.

Also present were Second Finance Minister Datuk Seri Johari Abdul Ghani, Minister in the Prime Minister's Department, Datuk Seri Shahidan Kassim and PR1MA Chief Executive Officer, Datuk Abdul Mutalib Alias.

Under the agreement, Maybank Investment Bank Bhd will act as the coordinating bank and facility agent to drive the fund-raising effort.

The bank will also act as joint lead arrangers/ joint lead manager, together with AmInvestment Bank, CIMB Investment Bank and RHB Investment Bank.

Abdul Mutalib said the fund would be used as working capital for the 89 PR1MA projects, involving 89,499 houses currently being constructed nationwide, with a gross development value of more than RM23 billion.

"The mandate to build 500,000 homes for the country's middle-income group is not an easy task, and requires a huge working capital.

"We cannot solely depend on government grants. For this programme to be sustainable, it is important that we look at external options to raise capital for nationwide projects," he told reporters after the signing ceremony.

To date, the government has allocated RM3.9 billion in grants, which have been disbursed since the launch of the PR1MA programme in 2013.

Abdul Mutalib said the PR1MA projects are running according to schedule, and to date, 8,475 residential units had been completed.

"We're confident of meeting the target to complete 17,000 residential units by year-end," he added.

He said to date, Perbadanan PR1MA had approved the development of 267,902 PR1MA housing units nationwide, of which 139,393 units are currently being constructed.

"At present, 9,791 PR1MA residential units had been sold, involving sales totalling RM2.36 billion," he added.

More than 1.42 million Malaysians had registered with PR1MA nationwide, of which 166,972 had applied for PR1MA houses.

Perbadanan PR1MA was incorporated under the PR1MA Act 2012 to implement a comprehensive and extensive affordable housing programme for Malaysians earning between RM2,500 and RM15,000 a month.