Gov is through compensation annually to MRCB for yearly RM 70m throughout its entire balance remain concession period for next 30 year, MRCB stand to total received a handsome RM 2.1 billion in total.
These compensation is to against EDL total current expensive sukuk debt of about RM 900 million now. These sukuk loan can be opt for REFINANCING to 30 year to matched the yearly compensation from government of RM 70m yearly, resulted, HANDSOME POSITIVE NET CASH FLOW TO MRCB
EDL initially have toll concession for period 34 year in total, and toll only start around 2014, therefore, from 2018 onward, no toll, instead GOV give attractive compensation RM 70m yearly for remain 30 year balance concession period (total RM 2.1 billion vs current debt RM 900m sukuk debt)
With Gov guarantee for yearly compensation RM 70m now. MRCB sukuk debt can be secure and re rating UPWARD, allowing MRCB to refinance its current borrowing for much longer term at more attractive lower interest to matched guarantee Government compensation yearly throughput 30 year concession period, resulted to have positive yearly cash flow for next 30 year.
If gov buy over the asset & take over the debt, MRCB will b super good.. By compensation of rm70m per annual, this is not a super deal for MRCB.. Not very good deal.. because, toll collection tend to increase over 30yr time.. Now , MRCB still need to bear the debt in the balance sheet..
Sharp eye and good question. Plus agreement until 2038 should be 21 years more correct. If govn compensate through longer Plus tenure then no need to pay anything.
Posted by Geo123 > Nov 3, 2017 02:46 PM | Report Abuse @hng33 "Johari did not elaborate further on how long the compensation period was to be." Where do you get 30 years? Your own assumption?
Stop trying to corn/get people into traps,your comment earlier for past few month has proved that you have fail ,you been promoting and ask people to buy from 1.40 down to below 1.00 Why should buy when there selling pressure , there chances we can get it at more lower price later.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
fzank
1,537 posts
Posted by fzank > 2017-11-03 12:32 | Report Abuse
lol ... i watched mcgregor romancing mayweather & nothing's change with mr.cb