Gerbang Perdana CIQ Sdn Bhd - 2011

MARC has affirmed its rating of AAA on Gerbang Perdana CIQ Sdn Bhd’s (GPCIQ) RM1.7 billion Medium Term Notes (MTN) programme with a stable outlook. The rating action reflects the strength of the underlying payments on Government of Malaysia (GoM) issued facility payment certificates (FPC) securing the notes. Cash flows to maintain timely debt service on the rated notes depend on the GoM’s continued payment on the FPCs issued in connection with the construction of the integrated Customs, Immigration and Quarantine (CIQ) Complex in Johor Bahru. Accordingly, the ‘AAA’ rating and outlook reflects that of the GoM.

Wholly-owned by Gerbang Perdana Sdn Bhd, GPCIQ is a special purpose vehicle established to raise funding for the construction of the RM1.3 billion CIQ project which commenced in January 2003. The CIQ project consists of the main CIQ building (Bangunan Sultan Iskandar), an integrated transportation hub (JB Sentral), a marine customs complex and road links to the city. It was opened to all road traffic in December 2008 and to rail service in October 2010. All construction works were completed on November 30, 2011. Noteholders had not been exposed to any construction risk in that the payment certificates were only issued by the government upon certification of work done on the CIQ complex. 
  
MARC notes that as the availability period for the MTN programme ended on November 8, 2011, no further drawdowns can be made. Current outstanding notes under the rated programme amounting to RM14.7 million are due on November 9, 2012, on which date the 8-year MTN programme is set to expire.