PR1MA to raise RM5 bil to sustain 89 housing projects

PUTRAJAYA (June 21): Perbadanan PR1MA Malaysia (PR1MA), the single largest affordable housing developer in Malaysia, is planning to raise RM5 billion to support 89 of its executed projects nationwide, comprising 89,449 units of homes.

The agency, which has been given a mandate by the government to build 500,000 affordable homes, is partnering four biggest local banks in Malaysia to raise the funds, via a combination of Sukuk programme and syndicated revolving credit facility with government guarantee.

Maybank Investment Bank Bhd is the coordinating bank and facility agent for the fundraising exercise, said PR1MA in a statement.

The investment bank is also one of the joint lead arrangers and managers together with AmInvestment Bank Bhd, CIMB Investment Bank Bhd and RHB Investment Bank Bhd. All four banks are also the acting financiers for the syndicated revolving credit facility.

PR1MA chief executive officer Datuk Abdul Mutalib Alias said the decision to raise funds from external platform was made to ensure the sustainability of PR1MA's programme.

"The mandate to build 500,000 homes for the country's middle-income group is indeed sizeable and requires a huge working capital," said Abdul Mutalib at the signing ceremony between PR1MA and the participating banks.

"For this programme to be sustainable, it is imperative that we look at other sources of funding, in addition to government grants," he added. To date, PR1MA has approved the development of 267,902 homes — of which 139,393 are under construction.

The ceremony, held in Perdana Putra here, was witnessed by Prime Minister Datuk Seri Najib Razak, Second Finance Minister Datuk Seri Johari Abdul Ghani, and Minister in the Prime Minister's Department Datuk Seri Shahidan Kassim.

PR1MA has sold 9,791 units with a sales value of RM2.6 billion. The agency has set a target of 17,000 completed units by the end of this year.

"We have completed 8,475 units of homes and we are confident that the 17,000 target can be achieved," said Abdul Mutalib. — theedgemarkets.com

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