PUTRAJAYA Holdings Sdn Bhd, which is speeding up the development of the new federal administrative capital Putrajaya, is on track to completing 67,000 residential units there by 2012.

Putrajaya Holdings chief executive officer Datuk Mohamad Othman Zainal Azim said the company would invest about RM10bil to develop the houses, of which 30,000 units had been allocated as government quarters.

''To date, we have built and sold about 10,000 units of government quarters,'' Othman said after the signing of an agreement with RHB Sakura Merchant Bankers Bhd and Alliance Merchant Bank Bhd for the issuance of RM850mil Bai’ Bithaman Ajil serial bonds In Putrajaya yesterday.

He said the residential units and supporting infrastructure were built based on demand.

According to Othman, the development of Putrajaya has been accelerated due to demand from the government sector. Initially, the entire development of Putrajaya is targeted for completion by 2020.

''We expect Putrajaya to mature by 2012 when it will have a critical mass of 335,000 people to generate its own growth,'' he said.

On the government offices, Othman said most of the projects would be finalised by 2005.

On Putrajaya Holdings' newly-arranged RM850mil corporate bonds under the Islamic financing concept of Bai’ Bithaman Ajil (BBA), Othman said the bonds would be issued in the middle of April.

Invitations had been sent out earlier to selected financial and other institutions to participate in the tender panel for the bidding of the bonds, rated AAA by Malaysia Rating Corp Bhd.

''This is the best time to get the best returns from the open market,'' Othman said, adding that the company could save on interest by using the Islamic debt financing compared with conventional methods.

The primary bonds of RM850mil carry maturities of between 2 and 12 years. Attached to each primary bond will be a specific number of secondary bonds with an aggregate value of RM292.88mil redeemable semi-annually.

The bonds will be securitised against the future lease rental which Putrajaya Holdings will receive as consideration from the federal government under several sub-leases for the completion of three parcels of government office buildings: Wisma Putra, the Deputy Prime Minister’s residence and the Finance Ministry office complex. Most of the government offices will be completed by 2005.

Putrajaya Holdings now has RM4.47bil worth of bonds, medium-term notes (MTNs) and commercial papers (CPs). It also has a RM1.29bil five-year redeemable secured convertible bonds, RM300mil three-year Mudarabah CPs/MTNs and RM910mil five-year Murabahah CPs/MTNs.

Source : The Star  26/3/2003