KUALA LUMPUR (Oct 16): Nextgreen Global Bhd had today accepted a RM400 million investment from Asia Capital Investment Fund (ACIF) to finance Nextgreen's Green Technology Park (GTP) projects in Malaysia.

In a Bursa Malaysia filing today, Nextgreen said ACIF's RM400 million investment comprises a subscription of 280 million new cumulative redeemable preference shares (CRPS) in Nextgreen at RM1 each, and a RM120 milllion loan.

Nextgreen said: "The board of directors of Nextgreen wishes to announce that the company has on 16 October 2018 entered into an investment agreement with ACIF, where ACIF has agreed to invest a sum aggregating to ringgit Malaysia four hundred million (RM400,000,000) into several special purpose vehicle companies to be incorporated and 100%-owned by Nextgreen, ultimately which are assigned to manage, inter-alia, GTP Pekan Project and two (2) others green technology projects in Johor and Sarawak, which are currently in the pipeline."

"The investment will enable the company to raise funds expeditiously, as compared to other forms of fund-raising such as rights issue. This will allow the company to raise funds for its working capital for the project, without having to incur interest costs on the CRPS, as compared to bank borrowings or issuance of debt instruments," Nextgreen said.