KUALA LUMPUR: IGB Corporation Bhd and Southkey City Sdn Bhd's joint venture will raise up to RM1bil under its debt note programme for a megamall project in Johor Baru which is expected to open its doors to the public at end 2018.
The JV company, Southkey Megamall Sdn Bhd will raise the RM1bil in nominal value via a medium term note (MTN) programme.
“Proceeds from the MTN programme will be utilised to, amongst others, part finance the development and construction of Mid Valley Megamall, Southkey,” the companies said in a joint statement.
Southkey is one of Johor’s largest integrated retail and commercial developments.
IGB Corp group managing director Datuk Seri Robert Tan said: “The MTN programme is the latest step in our efforts to realise Mid Valley Megamall, Southkey, as one of Johor’s largest integrated retail and commercial developments.
“Additionally, it allows us to diversify our funding sources further and provides financial flexibility for us to pursue opportunities that will continue to support the growth of IGB’s business,” he said.
Southkey Megamall has appointed Hong Leong Investment Bank Bhd (HLIB) and Maybank Investment Bank Berhad (Maybank IB) as joint principal advisers.
HLIB, Maybank IB and RHB Investment Bank Berhad are joint lead arrangers and joint lead managers for the MTN programme.
A lodgement in relation to the MTN programme was successfully made to the Securities Commission by Southkey Megamall on 27 October 2016. The eight year MTN Programme is not rated.
Southkey City Sdn Bhd managing director Datuk Mohamed Zaini Amran said: “The MTN Programme marks yet another milestone in our joint venture with IGB. We are happy with the progress made in relation to Mid Valley Megamall, Southkey, and are looking forward to opening the retail mall to the public at end 2018.”
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