KUALA LUMPUR: Bank Pembangunan Malaysia Berhad (BPMB) has granted Tawarruq Asset Financing facilities totalling RM1 billion to Lebuhraya Kajang-Seremban Sdn Bhd (LEKAS).
The financing, which is being provided solely by BPMB, is intended to help the Malaysian government's initiative to reduce the cost of living in cities.
LEKAS and the government had previously embarked on a concession restructuring exercise that included toll rate reductions.
The goal of this financing is to restructure LEKAS debt obligations in order to keep the highway sustainable and affordable to travellers.
BPMB group chief executive officer Roni Abdulwahab said that as Malaysia's premier development partner, the bank sees investments in infrastructure such as LEKAS as crucial for the country's economic growth, in line with the government's MADANI aspirations.
"Our support for LEKAS reflects our purpose of delivering impact capital for national development. In support of the growing population within the greater Klang Valley, our funding for LEKAS will further contribute to the thriving economic development," said Roni.
LEKAS, a well-established concessionaire in charge of highway management, has been serving the community since 2010.
The 44.3-kilometer LEKAS highway improves connectivity between Kajang and Seremban, as well as neighbouring townships such as Semenyih, Pajam, Mantin, Setul, and Paroi.
Wan Salwani Wan Yusoff, CEO of LEKAS said this funding marks a significant step towards achieving the company's shared vision of a more connected and sustainable future.
"With the reduction of toll rates, we further our commitment to easing the financial burdens of the communities we serve, supporting the government's initiative," he said.
