Kuala Lumpur: CIMB and Maybank today announced that their respective investment banking arms, CIMB Investment Bank Berhad (“CIMB”) together with Maybank Investment Bank Berhad (“Maybank IB”) have entered into an agreement with Cititower Sdn Bhd for a 20-year RM3.2 billion syndicated Islamic term financing (“Syndicated ITF”).
CIMB and Maybank IB will act as the joint mandated lead arrangers and bookrunners for the Syndicated ITF which is to part finance a mixed commercial development project located within the Kuala Lumpur City Centre (“Project”).
The Project is developed by Cititower Sdn Bhd, a joint venture company between KLCC (Holdings) Sdn Bhd and QD Asia Pacific Ltd (a subsidiary of Qatari Diar Real Estate Investment Company). The development will comprise of a Grade A office tower, a hotel tower, retail podium and other ancillary facilities.
The Project, which commenced in January 2012, will have an estimated total net lettable area (NLA) of approximately 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.
Datuk Hashim Wahir, Cititower Sdn Bhd’s Chairman, said that the Project is the latest addition within the KLCC Precinct. “It is designed as another iconic landmark for KLCC that enhance the overall Kuala Lumpur City’s skyline, while complementing the existing prime commercial developments especially, the PETRONAS Twin Towers, within the much sought after KLCC Precinct development area,” he said.
“These iconic mixed commercial towers developed by Cititower Sdn Bhd are designed with development components that will increase the vibrancy and value-add to the overall commercial branding in the KLCC Precinct. Both hotel and office towers are fully optimizing the beautiful view of KLCC Park which is the heart and soul of the integrated KLCC development,” he added.
Tengku Dato’ Zafrul Tengku Abdul Aziz, Group Chief Executive Officer of CIMB Group Holdings Bhd commented, “This financing transaction is a testament to our proven track record in delivering financing solutions for our 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.
Datuk Abdul Farid Alias, the Group President & CEO of Maybank, 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.
“Leveraging our strength as one of the top global leaders in Islamic banking, Maybank has ensured that we provide a competitive and innovative financing solution that provides long term value to Cititower Sdn Bhd," he added.
The Project is expected to be completed by mid-2020.