RAM Ratings Reaffirms AAA(bg)/Stable rating of EKVESB’s MYR 1 Billion Guaranteed Sukuk Murabahah Facility

RAM Rating Services (RAM) has reaffirmed the AAA(bg)/Stable rating of EKVE Sdn Bhd’s (EKVESB) Guaranteed Sukuk Murabahah Facility of up to MYR 1 billion in nominal value. EKVESB is a Malaysian concessionaire for the East Klang Valley Expressway (the Expressway), which is a 36.16 km closed-toll system, which is pursuant to a 50-year concession agreement with the Government of Malaysia.

The rating reflects the conditional guarantee extended by Maybank Islamic and Bank Pembangunan Malaysia, which are AAA-rated, according to RAM. Construction of the Expressway has been held up due to delays in land acquisition and approvals for bridge designs from environmental authorities, as well as rock blasting procedures. As of October 2020, the Expressway was 76.75% completed, with ove...