KUALA LUMPUR (Dec 7): Tanjung Pinang Development Sdn Bhd (TPD), a subsidiary of Eastern & Oriental Bhd (E&O), has secured RM1.084 billion worth of banking facilities for its Seri Tanjung Pinang Phase 2 (STP 2) reclamation project, according to E&O.
“With the funding in place for STP2, one of the key aspects to operationalise the project has been successfully addressed,” E&O managing director Datuk Seri Terry Tham Ka Hon said in a statement today.
TPD has signed the banking facilities agreement with Maybank Islamic Bank Bhd (MIB) and RHB Islamic Bank Bhd (RHBIB). The syndicated banking facilities will be used to part-finance the reclamation and infrastructure works of the STP2 project in Penang.
The Joint Principal Advisors, Mandated Lead Arranger, Underwriters and Bookrunners for the syndicated banking facilities are Maybank Investment Bank Bhd and RHB Bank Bhd.
Tham added that all relevant requirements and authorities’ approvals for STP2 are in hand, which included approval of the project’s Detailed Environmental Impact Assessment (DEIA) study by the Federal Department of Environment following a well-received public dialogue, endorsement of the STP2 masterplan and granting of the Planning Permission for STP2 reclamation works by the Penang state authorities.
The Concession Agreement for Seri Tanjung Pinang dated Oct 4, 1990, provides the developer the rights for the reclamation of 980 acres at Tanjung Tokong off the northeast coast of Penang island. The land reclamation will be divided to two phases, with the first phase of 240 acres and the rest of 740 acres in the second phase.
However, in 1999, E&O was required to surrender 20 acres of the 240 acres reclaimed in STP1, to the Penang State government for the Proposed Coastal Road Corridor. In return, 20 acres would be replaced in STP2, therefore, bringing the total reclamation of STP2 from 740 acres, as provided by the concession agreement, to 760 acres.
Source : theedgeproperty.com.my