Plus needs to address sukuk holders' concerns over proposed toll reduction

Plus Malaysia Berhad (Plus) says it will need to address the concerns of its sukuk holders following the government's proposal to slash the toll rate along the North-South Expressway (NSE) by 18 percent in exchange for a 20-year extension to the existing concession period.

As such, Plus said it is now engaging the government on the details of the proposal, which the government has set Feb 1 as the deadline for implementation.

"Given the intended implementation date of Feb 1, 2020, we are presently engaging the government to confirm the scope and mechanics of the toll reduction.

"This is because of the need to ascertain the current concession agreement status as well as address any concerns that our sukuk holders may have," said Plus chairperson Mohamad Nasir.

Plus added that it remains committed to delivering safe and comfortable highway travel by "leveraging on innovation for the rakyat".

Plus is 51 percent-owned by the Employees Provident Fund (EPF) and 49 percent owned by Khazanah Nasional Berhad through its wholly-owned subsidiary UEM Group Bhd.

The two entities took over Plus in 2011 as part of a privatisation plan.

To fund the privatisation and refinance its debt, Plus took out around RM30.6 billion in Islamic sukuk.

After months of deliberation, the government decided to reject several interested parties' offer to takeover Plus.

The interested parties had claimed they can offer significant discounts to toll rates if they are allowed to take over Plus.

Instead, the government agreed to allow EPF and Khazanah, both government-linked entities, to keep the highway on condition that it cuts toll rates by 18 percent for a 20-year extension until 2058.

Apart from the NSE, Plus also operates the North–South Expressway Central Link (Elite), Malaysia–Singapore Second Link, Sremban-Port Dickson Highway, Butterworth-Kulim Expressway and the Penang Bridge. - Mkini