KUALA LUMPUR: Ekovest Bhd will spend RM35 million to subscribe to the junior bonds issued by Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi) which operates the Duke highway.

According to Ekovest’s financial controller Cheong How Soon, the issue of junior bonds by Kesturi is required to replace the old bonds.

“It will be used partly to boost the equity in Kesturi,” said Cheong when met after Ekovest’s extraordinary general meeting yesterday.

The junior bond issue amounted to RM50 million, of which RM35 million would be subscribed to by Ekovest while another substantial shareholder, Malaysian Resources Corp Bhd, (MRCB) will  take on the remaining RM15 million. MRCB owns 30% of Kesturi.

Meanwhile, Kesturi’s director Lim Keng Cheng says the traffic flow for the Duke highway has almost reached its target of 94,000 vehicles per day.

Currently, Ekovest is involved in constructing the campuses of Universiti Malaysia Sabah and Universiti Tun Hussein Onn Malaysia which are due to complete by June 2011 and end-2012 respectively.

“The balance of these contracts are about RM400 million,” says Cheong, adding that the company is also currently doing feasibility studies at developing commercial properties on its own land in Cheras and Jalan Pahang next year.

On whether Ekovest has plans to expand abroad, Cheong said the company is not looking to go abroad as there are many opportunities in Malaysia.

Ekovest’s stocks closed at RM1.57 yesterday, down six sen with 4,280 shares traded.

This article appeared in The Edge Financial Daily, October 21, 2010.