CIMB, Maybank offer RM3.2b loan for KLCC project

PETALING JAYA: Maybank Investment Bank Bhd (Maybank IB) and CIMB Investment Bank Bhd (CIMB) have together entered into an agreement with Cititower Sdn Bhd for a 20-year RM3.2 billion syndicated Islamic term financing (Syndicated ITF).
The banks will act as the joint mandated lead arrangers and bookrunners for the Syndicated ITF which is to part finance Cititower's mixed commercial development project in the Kuala Lumpur City Centre.
Cititower is a joint venture company between KLCC (Holdings) Sdn Bhd and QD Asia Pacific Ltd (a subsidiary of Qatari Diar Real Estate Investment Company).
Tengku Datuk Zafrul Tengku Abdul Aziz, CIMB Group Holdings Bhd's Group CEO said the financing transaction is a testament to the banks proven track record in delivering financing solutions for its corporate clients and also demonstrates the continuing popularity of Islamic finance as a source of funding.
"We are pleased to be part of this collaboration with Cititower Sdn Bhd for what will be the next high-profile integrated mixed commercial development in the KLCC Precinct and I would like to put on record our gratitude to the Board and management of the Project sponsors, KLCC (Holdings) Sdn Bhd and QD Asia Pacific Ltd, for entrusting us with this transaction", Tengku Zafrul added.
Meanwhile, Maybank Group president & CEO Datuk Abdul Farid Alias of, meanwhile said, "We are grateful to Cititower Sdn Bhd and its shareholders for their confidence in the Maybank Group's ability to ensure the success of this prestigious project which we believe will contribute strongly to the sustainable growth of the KLCC Precinct," he said.
The development reportedly has a gross development value of RM5 billion will comprise of a Grade A office tower, a hotel tower, retail podium and other ancillary facilities.
The project, which commenced in Jan 2012, will have an estimated total net lettable area (NLA) of about 2.84 million sq ft consisting of 1.72 million sq ft of office tower, 0.65 million sq ft of hotel tower and 0.47 million sq ft of retail podium.
The project is expected to be completed by mid-2020.