ZECON (7028) : Zecon signs RM595.5m loan deal for children’s hospital
KUALA LUMPUR: Construction-based Zecon Bhd’s subsidiary, Zecon Medicare Sdn Bhd, has signed a RM595.5 million syndicated term loan facility with a consortium of banks for the construction and operation of a specialist children’s hospital here.
The amount represents 80 per cent of the project cost, estimated at RM744.4 million. The remaining funding for RM148.9 million will comprise an equity injection from Zecon Medicare.
The Sarawak-based firm will have 54 months to build the 243-bed Hospital Kanak-Kanak Permata under the 30-year build, lease, maintain and transfer concession from the Education Ministry and Universiti Kebangsaan Malaysia (UKM).
“The project is expected to generate a total gross revenue of about RM3.7 billion over the concession’s 25.5 years operation period, which amounts to some RM140 million a year,” said Zecon group managing director and chief executive officer Datuk Zainal Abidin Ahmad at the signing yesterday.
He said Zecon was awarded the concession last year after beating more than 10 other bidders in a public-private partnership project by the Prime Minister’s Department.
The children’s hospital will be located next to UKM Medical Centre in Cheras. The hospital complex will include 54 units of apartments for medical tourism.
“Under this public-private partnership, we hope to offer advanced specialist paediatric services like those of the Great Ormond Street Hospital in London and Westmead Children’s Hospital in Sydney,” said Zecon Medicare chairman Datuk Dr Haron Ahmad.
The children’s hospital will cover about 115,749 square metres and will have wards for paediatric cancer treatment and bone marrow transplants, as well as play therapy.
The RM595.5 million syndicated term loan was arranged by Affin Hwang Investment Bank Bhd, with participation from Bank Kerjasama Rakyat Malaysia Bhd, Bank Pembangunan Malaysia Bhd and Affin Islamic Bank Bhd.
Construction began this month
KUALA LUMPUR: Construction-based Zecon Bhd’s subsidiary, Zecon Medicare Sdn Bhd, has signed a RM595.5 million syndicated term loan facility with a consortium of banks for the construction and operation of a specialist children’s hospital here.
The amount represents 80 per cent of the project cost, estimated at RM744.4 million. The remaining funding for RM148.9 million will comprise an equity injection from Zecon Medicare.
The Sarawak-based firm will have 54 months to build the 243-bed Hospital Kanak-Kanak Permata under the 30-year build, lease, maintain and transfer concession from the Education Ministry and Universiti Kebangsaan Malaysia (UKM).
“The project is expected to generate a total gross revenue of about RM3.7 billion over the concession’s 25.5 years operation period, which amounts to some RM140 million a year,” said Zecon group managing director and chief executive officer Datuk Zainal Abidin Ahmad at the signing yesterday.
He said Zecon was awarded the concession last year after beating more than 10 other bidders in a public-private partnership project by the Prime Minister’s Department.
The children’s hospital will be located next to UKM Medical Centre in Cheras. The hospital complex will include 54 units of apartments for medical tourism.
“Under this public-private partnership, we hope to offer advanced specialist paediatric services like those of the Great Ormond Street Hospital in London and Westmead Children’s Hospital in Sydney,” said Zecon Medicare chairman Datuk Dr Haron Ahmad.
The children’s hospital will cover about 115,749 square metres and will have wards for paediatric cancer treatment and bone marrow transplants, as well as play therapy.
The RM595.5 million syndicated term loan was arranged by Affin Hwang Investment Bank Bhd, with participation from Bank Kerjasama Rakyat Malaysia Bhd, Bank Pembangunan Malaysia Bhd and Affin Islamic Bank Bhd.
Construction began this month
