Southkey Megamall: Proposed Financing Of Up To RM1 Billion


 Southkey Megamall: Proposed Financing Of Up To RM1 Billion

KUALA LUMPUR, 27 October – IGB Corporation Berhad and Southkey City Sdn Bhd announced today that its joint venture company, Southkey Megamall Sdn Bhd (“Southkey Megamall”), will be raising financing of up to RM1.0 billion in nominal value via a Medium Term Notes (“MTNs”) Programme (“MTN Programme”). 

Under the MTN Programme, Southkey Megamall may, from time to time, issue MTNs denominated in Malaysian Ringgit. Proceeds from the MTN Programme will be utilised to, amongst others, part finance the development and construction of Mid Valley Megamall, Southkey (“Project”).

At an event held today at The Gardens Hotel & Residences in Kuala Lumpur, Dato’ Seri Robert Tan, Group Managing Director of IGB Corporation Berhad, said, “The MTN Programme is the latest step in our efforts to realise Mid Valley Megamall, Southkey, as one of Johor’s largest integrated retail and commercial developments. Additionally, it allows us to diversify our funding sources further and provides financial flexibility for us to pursue opportunities that will continue to support the growth of IGB’s business.”

Southkey Megamall has appointed Hong Leong Investment Bank Berhad (“HLIB”) and Maybank Investment Bank Berhad (“Maybank IB”) as joint principal advisers, and HLIB, Maybank IB and RHB Investment Bank Berhad as joint lead arrangers and joint lead managers for the MTN Programme.

A lodgement in relation to the MTN Programme was successfully made to the Securities Commission Malaysia by Southkey Megamall on 27 October 2016. The eight year MTN Programme is not rated. 

Datuk Mohamed Zaini bin Amran, Managing Director of Southkey City Sdn Bhd, said, “The MTN Programme marks yet another milestone in our joint venture with IGB. We are happy with the progress made in relation to Mid Valley Megamall, Southkey, and are looking forward to opening the retail mall to the public at end 2018.”

The Mid Valley Megamall, Southkey development is part of the major re-development of Kem Majidee (now known as Southkey) located near the city centre of Johor Bahru, Johor. It is well connected to major highways and roads with North-South connections from Kuala Lumpur and Singapore via the EDL (Eastern Dispersal Link Expressway) and is 8 km away from the Customs, Immigration and Quarantine complex (CIQ) to Singapore. 

The shopping mall consists of six (6) levels of retail, two (2) levels of basement car parking, and eight (8) levels of elevated car parks. This mall forms part of the larger RM6 billion integrated mixed use development by Southkey Megamall which will comprise of three (3) hotels, four (4) office towers and one (1) serviced apartment. Once completed, Mid Valley Megamall, Southkey, with its estimated 140,000sqm of net lettable area, 400 retailers including anchor tenants, and 6,000 car park bays, will be one of the largest malls in Johor.

Image Caption: Artist’s Impression of Mid Valley Megamall, Southkey

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