On 13 October 2022, ALR successfully issued RM5.5 billion in nominal value AAA-rated Senior Sustainable and Responsible Investment Sukuk Murabahah ("Sustainability Sukuk Murabahah") and completed its acquisition of four highway toll concessionaires:
The concessionaires above are now wholly owned subsidiaries of ALR.
Under this new innovative structure derived from the acquisition, the current toll rates for all four highways will be maintained until the end of each of their concession periods. The social value proposition and key benefits of this new structure are:
ALR and its subsidiaries are overseen by a board of directors ("BoD"), and the four concession companies currently operate and perform maintenance on the highways with the existing management team and staff.
ALR's BoD has a full fiduciary duty to the company's capital providers.
ALR's BoD is also its shareholders, and ALR's shareholders are its BoD.
ALR's shareholders are "not-for-profit" motivated and thus cannot extract any dividends nor distribution whatsoever from ALR.
Therefore, all and any profits generated through the operation of these four highway concessions must be channelled purely for the servicing and early redemption of ALR's financial debts, which is solely to the benefit of the motoring rakyat since ALR is obligated to return the concessions to the Government as soon as its financial debts have been fully redeemed.
Under our ALR structure, the more traffic there is on our highways, the shorter the concession will be.
As trustees of four crucial public assets that serve our capital city and the Klang Valley, we are deeply mindful of our duty to discharge our mandate effectively and safeguard the interests of all our stakeholders at all times. We are committed to managing ALR’s business in a sustainable, responsible and holistic manner.
1 the return of Concessions shall be performed immediately upon sufficiency of cash resources to account and provide for all the costs and expenses of cessation of business and termination of employments.
Amanat Lebuhraya Rakyat Berhad directors and management are committed in maintaining good corporate governance by constantly having in place an effective corporate governance framework.
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