PETALING JAYA: CIMB and Maybank’s respective investment banking arms, CIMB Investment Bank Bhd (CIMB) and Maybank Investment Bank Bhd (Maybank IB), have entered into an agreement with Cititower Sdn Bhd for a 20-year RM3.2bil syndicated Islamic term financing (ITF).

CIMB and Maybank IB will act as the joint mandated lead arrangers and bookrunners for the syndicated ITF to part finance a ongoing mixed commercial development project within the Kuala Lumpur City Centre (KLCC) that is expected be completed by mid-2020.

Cititower, which is a joint-venture company between KLCC (Holdings) Sdn Bhd and QD Asia Pacific Ltd, will develop the project comprising a Grade A office tower, a hotel tower, retail podium and other ancillary facilities.

QD Asia Pacific is a subsidiary of Qatari Diar Real Estate Investment Co.

The project, which commenced in January 2012, will have an estimated total net lettable area of 2.84 million sq ft consisting of 1.72 million sq ft of office tower, 0.65 million sq ft of hotel tower and 0.47 million sq ft of retail podium.

CIMB Group Holdings Bhd group chief executive officer Tengku Datuk Zafrul Tengku Abdul Aziz said that this financing transaction was a testament of its proven track record in delivering financing solutions for its corporate clients.

Adding that this also demonstrated the continuing popularity of Islamic finance as a source of funding, he said CIMB was pleased to be part of this collaboration for the “next high-profile integrated mixed commercial development in the KLCC Precinct”.

“I would like to put on record our gratitude to the board and management of the project sponsors, KLCC (Holdings) and QD Asia Pacific, for entrusting us with this transaction,” he said in a statement yesterday.

Maybank group president and chief executive officer Datuk Abdul Farid Alias said that it was grateful for Cititower and its shareholders’ confidence in the group’s ability to ensure the success of the project.

“Leveraging our strength as one of the top global leaders in Islamic banking, Maybank has ensured that we provide a competitive and innovative financing solution that provides long term value to Cititower,” he added.

Cititower chairman Datuk Hashim Wahir said that the project was designed to be another iconic landmark for KLCC that would enhance Kuala Lumpur’s city skyline while complementing existing prime commercial developments such as the Petronas Twin Towers.

“These iconic mixed commercial towers developed by Cititower are designed with development components that will increase the vibrancy and value-add to the overall commercial branding in the KLCC Precinct. Both hotel and office towers are fully optimising the beautiful view of KLCC Park which is the heart and soul of the integrated KLCC development,” he said.