KUALA LUMPUR (July 19): Prestariang Bhd plans to raise about RM1 billion via sukuk and direct term loan to fund the National Immigration Control System or SKIN, for which it secured a 15-year concession agreement from the government.

"We need RM1 billion, that is why we are going to the market to raise the money and even talking to the bankers.

"We will be able to do it very quickly simply because it is a good project, as it is a concession business with an assured payment from the government," Prestariang chief executive officer (CEO) Dr Abu Hasan Ismail told the reporters in a media briefing today.

Abu Hasan said the group is looking at sukuk issuance and direct term loan instead of private placement and right issue because the latter two options would take a longer time.

"We have a few options. [But] for rights issue, we can confirm that we are not looking at that... We are not doing the private placement and rights issue because they take more time, we want to do it (raise fund) as soon as possible," Abu Hasan said.

Prestariang announced it has inked the 15-year concession agreement with the government yesterday.

The RM3.5 billion deal was signed by PSKIN — a wholly-owned unit of Prestariang's 70%-owned subsidiary, Prestariang Services Sdn Bhd — with the Home Affairs Ministry.

SKIN CEO Raja Azmi Adam said SKIN is a new border control system to replace the current Malaysian Immigration System.

"It is a government-led initiative, as the current system needs to be refreshed and rebranded because some of the technologies used are old technologies and things have changed," he said.

PSKIN will undertake the planning, design, financing, development, customisation, supply, delivery, installation, configuration, integration, interfacing, testing and commissioning of SKIN, as well as carry out maintenance services on the system.