Gerbang Perdana CIQ Sdn Bhd - 2007

MARC has reaffirmed the AAA rating of Gerbang Perdana CIQ Sdn Bhd’s (Gerbang Perdana CIQ) RM1.7 billion Seven Year Medium Term Notes (MTN) Programme. The rating carries a stable outlook. The rating reflects the credit quality of receivables from the Government of Malaysia (GOM) in respect of Facility Payment Certificates (FPCs) issued in connection with the construction of an Integrated Customs, Immigration and Quarantine Complex (CIQ Complex). The FPCs represent unconditional and irrevocable obligations of the GOM.

Gerbang Perdana Sdn Bhd (GPSB) was awarded the CIQ Complex Project by the GOM in April 2003. GPSB incorporated a wholly-owned subsidiary, Gerbang Perdana CIQ Sdn Bhd (Gerbang Perdana CIQ), a special purpose vehicle to facilitate the issuance of the MTN Programme. All MTNs issued are backed by FPCs that are issued upon acceptance of work done.  The holding company of GPSB is privately-owned Merong Mahawangsa Sdn Bhd.

The construction schedule of the CIQ Complex Project has been reviewed and rescheduled arising from the termination of the Bridge Project. A Supplemental Contract No. 4 was signed between the GOM and GPSB on 10 May 2007, extending the date of completion of the last section of the CIQ Project to 30 July 2009. As at 31 December 2007, the Main CIQ Building and the new Marine Customs Complex at Tanjung Surat have been completed with other sections at various stages of completion. The whole project is expected to be completed by the revised date of completion.

To meet the timelines under the Supplemental Contract No. 4 and ensure adequate financing, Gerbang Perdana CIQ requested and obtained approval for the extension of the availability period of the MTN Programme from 9 November 2007 to 31 December 2008.

On 9 November 2007, Gerbang Perdana CIQ redeemed its MTN series 1 amounting to RM340.0 million, following which outstanding MTNs total RM991.9 million. The next scheduled reduction will be on 9 November 2008.

In addition to the tight conditions of the MTN issuance, note holders’ interests are protected from commingling risk by way of a designated account created by GPSB to receive payments directly from the GOM for the sole purpose of repaying Gerbang Perdana CIQ’s obligations under the rated MTN Programme.