Kajang-Seremban Highway

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In 1997, the Malaysian government awarded to Antah Holdings Bhd a BOT contract for the development of a 44.3km highway project between Kajang and Seremban. However, the project had to be put on hold due to difficulties in obtaining funding as a result of the Asian financial crisis. The project was revitalized in November 2006 after a takeover by a new concessionaire, Lebuhraya Kajang-Seremban Sdn. Bhd. (Lekas). Lekas, a 50:50 joint venture company of IJM Corporation Bhd and Antah Holdings Bhd, was a special purpose vehicle set up to undertake the 32.5 year BOT contract. The project reached financial closure in April 2007. The funding of the project, mainly proivided through islamic bond market, was structured into various instruments comprising US$237 million (RM785 million) senior Istisna’ bonds and US$191 million (RM633 million) junior Istisna’ bonds (collectively known as Sukuk Istisna). Other instruments include a US$12 million (RM40 million) joint revolving credit facility and bank guarantee facility, US$72 million (RM240 million) redeemable convertible unsecured loan stocks and US$15 million (RM50 million) redeemable unsecured loan stocks. Information on total project cost was limited. Project construction cost was estimated at US$272 million (RM900 million), but the project's entire cost was expected to be higher since land costs had to be reimbursed to the Government. Construction of the highway was expected to be completed by October 2009. The road opened on August 28,2008.