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ZUL RAFIQUE & partners’ Banking & Finance team, Ashela Ramaya, Chan Kwan Hoe and Farrah Yakin acted as the solicitors for Konsortium KAJV Sdn Bhd, a special purpose company established to undertake the project for the design and build of water treatment plant and membrane water treatment plants, intakes, service tanks, installation of raw and treated water pipe, retrofitting and other associated works for the proposed water supply scheme for Kuala Terengganu Utara, Kuala Terengganu (“Project”).

The proceeds of the sukuk shall be utilised to amongst others, fund the construction of the Project and to pay the principal sum under the interim facilities utilised to fund part of the construction of the Project.

The primary source of repayment for the sukuk programme shall be from the deferred payment sum under the relevant facility payment certificates issued by the State Government of Terengganu (FPC) for payment of the construction works done of the Project. Each sukuk issuance will be backed against FPC(s) upon completion of works under the design and build contract in relation to the Project. The FPC represents unconditional and irrevocable obligation on the State Government of Terengganu to pay the approved sum on stipulated payment dates on the certificates notwithstanding any delay in completing the Project or other works that remain incomplete under the Project.


For more insights into this area of law, please contact our Partners in Banking & Finance Practice Group: 
Loh Mei Mei
Kung Suan Im
Ashela Ramaya
Chan Kwan Hoe 
Celine Rangithan