Malaysia launches RM300m retail bond to fund rail project
KUALA LUMPUR, Jan 9 – DanaInfra Nasional Bhd, a unit owned by Malaysia’s Finance Ministry, yesterday launched a 10-year Islamic bond worth RM300 million aimed at retail investors to raise funds for the country’s largest infrastructure project.
DanaInfra, which was created last year to facilitate funding for large infrastructure projects, will draw the amount from an RM8 billion bond programme established to cover costs for the planned Mass Rapid Transit (MRT) rail system.
“The bonds launched today represent an opportunity for people to invest in, and profit from, the nation’s development,” said Prime Minister Najib Razak at the launch of DanaInfra’s bond, the first retail note to be issued on Malaysia’s stock exchange.
The first of three lines for the MRT in the capital Kuala Lumpur will span 51km and be fully operational by July 2017.
Project costs for the packages that have been awarded are estimated at RM20 billion.
“The population of the capital city is expected to reach 10 million by 2020 and pressures in its infrastructure will grow.
“Without the additional capacity, the city will be choked with traffic and this will make it less livable,” added Najib.
DanaInfra expects to issue new bonds every quarter. It last year issued 2.4 billion ringgit in Islamic bonds for institutional investors. – Reuters