KUALA LUMPUR (Oct 27): IGB Corp Bhd's joint venture company with Southkey City Sdn Bhd — Southkey Megamall Sdn Bhd — will be raising up to RM1 billion via debt papers to finance the development and construction of the Mid Valley Megamall Southkey project.

The financing will be raised via its unrated eight-year medium-term note (MTN) programme.

“The MTN programme is the latest step in our efforts to realise Mid Valley Megamall, Southkey, as one of Johor’s largest integrated retail and commercial developments. Additionally, it allows us to diversify our funding sources further and provides financial flexibility for us to pursue opportunities that will continue to support the growth of IGB’s business,” said IGB Corp group managing director Datuk Seri Robert Tan at an event held here today.

Southkey Megamall has appointed Hong Leong Investment Bank Bhd (HLIB) and Maybank Investment Bank Bhd (Maybank IB) as joint principal advisers for the MTN programme. HLIB, Maybank IB and RHB Investment Bank Bhd will be the joint lead arrangers and joint lead managers.

“The MTN Programme marks yet another milestone in our joint venture with IGB. We are happy with the progress made in relation to Mid Valley Megamall, Southkey, and are looking forward to opening the retail mall to the public at end 2018,” said Southkey City managing director Datuk Mohamed Zaini Amran.  

Meanwhile, Tan is expecting the Southkey mall to serve a catchment population of around five million people, similar to its sister mall in the Klang Valley here.

"The catchment area will be around 3km to 10 km, which will spread from around the Johor Bahru town to Singapore," Tan told reporters after the event.

He said around 50,000 shoppers per day will be sufficient to sustain the mall.

Tan noted that the gross development value (GDV) of the retail mall will be around RM3 billion to RM4 billion, depending on the eventual performance of the mall.