E&O Secures RM1.084 Billion Banking Facility For Seri Tanjung Pinang Phase 2

E&O Secures RM1.084 Billion Banking Facility For Seri Tanjung Pinang Phase 2

KUALA LUMPUR, Dec 7  — Eastern & Oriental Bhd’s (E&O) unit, Tanjung Pinang Development Sdn Bhd (TPD), has secured up to RM1.084 billion in syndicated banking facility for its Seri Tanjung Pinang Phase 2 (STP2) reclamation project.

In a statement today, E&O said TPD executed a facility agreement with Maybank Islamic Bank Bhd (MIB) and RHB Islamic Bank Bhd (RHBIB) in relation to the syndicated banking facilities.

“The banking facilities will be used to part-finance the reclamation and infrastructure works of the STP2 project in Penang,” it said.

E&O Managing Director Datuk Seri Terry Tham Ka Hon said with the funding, a key aspect to operationalise the STP2n was successfully addressed with all relevant requirements and approvals in hand.

“These include the approval of the project’s Detailed Environmental Impact Assessment study by the Department of Environment following a well-received open public dialogue, endorsement of the STP2 masterplan and granting of the Planning Permission for STP2 reclamation works by the Penang state authorities,” Tham said.

E&O said the concession agreement for Seri Tanjung Pinang provided for the reclamation of 396.59 hectares in two phases at Tanjung Tokong, off the Northeast coast of Penang.

“However, in 1999, we were required to surrender 8.09 hectares of the 97.12 hectares reclaimed in STP1 to the Penang state government for the proposed Coastal Road Corridor.

“In return, 8.09 hectares would be replaced in STP2, bringing the total reclamation of STP2 from 299.46 hectares, as provided by the concession agreement, to 307.56 hectares,” it added.

— BERNAMA

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