KUALA LUMPUR, 16 June - A consortium comprising four local banks and four international banks with a combined asset base exceeding US$13tril have set up a new fund to finance the development of the Bandar Malaysia project in Kuala Lumpur.
The Bandar Malaysia fund, which will be utilized to finance development and construction works, are backed by some of the largest bank in the world. The international banks that are participating include the Bank of China, Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB) and HSBC.
The local banking groups backing the fund are CIMB, Maybank, RHB, and Affin Bank.
The announcement was made at the signing of three key agreements today pertaining to Bandar Malaysia which is set to become a premier mixed-use transport oriented development in the heart of Kuala Lumpur.
The project is spearheaded by IWH CREC Sdn Bhd (ICSB), a 60:40 joint venture between Iskandar Waterfront Holdings Bhd and China Railway Engineering Corp (CREC).
On March 21, ICSB had announced a US$2bil investment by CREC to build its regional centre in Bandar Malaysia.
The second agreement is a memorandum of understanding (MoU) with Malaysian Resources Corp Bhd (MRCB) which will set up a joint venture with Bandar Malaysia Sdn Bhd for the construction of the Bandar Malaysia terminal.
The joint venture will design, develop and construct a mixed-use integrated transport terminal spanning an area of 60 acres.
It will serve as a central transportation hub for the Mass Rapid Transit, KTM Komuter, Bus Rapid Transit (BRT) and Express Rail Link (ERL) lines.
The third agreement is the commitment by the master developer that 5,000 units of affordable homes will be built during the first phase of Bandar Malaysia, with the development to be undertaken on a fast-track basis.