West Coast Expressway operator receives government consent for RM1.15b financing from Bank Pembangunan

• Of the West Coast Expressway’s 11 sections, eight have been completed and begun operations — the most recent being Section 2, which commenced in January this year.

KUALA LUMPUR (April 22): WCE Holdings Bhd (KL:WCEHB) said its 80%-owned unit West Coast Expressway Sdn Bhd has received consent and approval from the Malaysian government to accept a RM1.15 billion term loan facility from Bank Pembangunan Malaysia Bhd.

The 80%-unit is the operator of the 233km West Coast Expressway. WCE said the term loan facility will be used to part-finance costs and expenses associated with the West Coast Expressway project.

This comprises development, design, construction fees and financing costs (including interest during construction) as well as other related fees and expenses in relation to the project.

“The board is of the view that the facility is in the best interest of the company and its stakeholders and will provide the necessary funding for the completion of the project,” it added.

Of the West Coast Expressway’s 11 sections, eight have been completed and begun operations — the most recent being Section 2, which commenced in January this year.

Another three sections of the highway are still in the works. This comprises Section 3 (Shah Alam Expressway–Federal Highway Route 2), Section 4 (Federal Highway Route 2–New North South Klang Straits Bypass) and Section 7 (Assam Jawa–Tanjung Karang).

WCE’s largest shareholders are IJM Corp Bhd (KL:IJM) with a 28.16% stake; MWE Holdings Bhd (27.22%), a company linked to businessman Tan Sri Surin Upatkoon; and United Frontiers Holdings Ltd (10.77%), a company controlled by Tan Sri Pang Tee Chew.

Shares in WCE hovered at 68 sen at the time f writing at late morning Tuesday, valuing the company at RM2.23 billion.

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