• 13 Aug

    Malaysia Plans To Fund 55 Billion Ringgit Rail Project Via China EXIM Bank Loan, Sukuk

     Malaysia said Wednesday it plans to finance the construction of East Coast Rail Link estimated at 55 billion ringgit ($12.83 billion) through a mix of soft loan from a Chinese state-owned bank and Islamic bonds issuance.

    Prime Minister Najib Razak said that 85% of the project cost will be funded through a soft loan from Export-Import Bank of China at 3.25% interest. The balance will be financed through issuance of Islamic bonds, or sukuk to be issued by a special purpose vehicle Malaysia Rail Link and the bond issue will managed by Malayan Banking, CIMB Group Holdings, and RHB Bank, he said.

    The project, spanning 688 kilometers connecting Malaysia's eastern and western coasts, is expected to be completed by mid-2024, Najib added.

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