Narrative
Full Description
Project narrative
On October 18, 2023, China Construction Bank signed a term loan agrement with MCKILP Development Sdn. Bhd. — a joint venture of China Harbour Engineering Company Ltd. (CHEC), Malaysia's IJM Corporation and the Guangxi-based Beibu Gulf Port Group created on August 3, 2022 -- for the Malaysia-China Kuantan Industrial Logistic Park (MCKILP) Project. The face value and borrowing terms of the loan are unknown. The purpose of the RMB 6 billiion project is to build an integrated mixed development and logistic hub in Kuantan. MCKILP is to be developed on a 640-acre site in Malaysia-China Kuantan Industrial Park (MCKIP). It will focus on the development of warehousing, logistics, distribution, processing and transit trade, with the aim of crafting itself into a logistics hub in Southeast Asia of the New International Land-Sea Trade Corridor, a trade and logistics passage jointly built by western Chinese provincial regions and Singapore. CHEC and IJM Corporation are jointly responsible for project implementation. The project's official groundbreaking ceremony took place April 7, 2023.
Staff comments
1. The Chinese project title is 中关丹国际物流产业园跨境项目. 2. The face value of the CCB term loan is unknown. For the time being, AidData assumes that the RMB 6 billion project was financed according to a debt-to-equity ratio of 70:30, which implies that the loan commitment was equivalent to RMB 4.2 billion. This issue warrants further investigation. 3. Asas Panorama Sdn. Bhd, IJM Corporation Berhad’s (“IJM”) indirect subsidiary that is owned 60:40 by IJM Land Berhad and Guangxi Beibu Gulf International Port Group Co Ltd (“Guangxi Beibu”). CHEC holds an equity interest of 51% in MCKILP Development Sdn. Bhd. while Asas Panorama Sdn Bhd. holds the remaining 49% equity interest.