Westports to raise RM800m via sukuk

WESTPORTS Malaysia Sdn Bhd, the operator of Westports in Port Klang, will appoint OSK Holdings Bhd to arrange, structure and lead-manage its RM800 million sukuk issue in a ceremony today.The company will use money raised from the sale of the Islamic bond to finance the port's expansion.Westports Malaysia is spending some RM800 million over three years starting 2007 to boost the number of berths and increase container-handling facilities at the port.In a September 2007 interview, Westports executive chairman Tan Sri G. Gnanalingam had said that the first-year expansion calls for RM460 million in spending, which includes a 600m expansion of its current 2,600m berth length, scheduled to be completed by June this year.Additionally, it has bought four new Super Post-Panamax quay cranes at RM77.4 million, bringing the total number to 28.Westports will also expand its container yard operations, buy 48 prime movers, 51 trailers and 33 rubber-tyred gantry cranes.Gnanalingam had said that the investment will be funded by internal accruals, deferred payments to contractors for five years and bank borrowings.He added that the port's expansion is to cater for its growing container throughput, where it aims to handle five million TEUs (20-foot equivalent units) this year. -www.btimes.com.my