Weststar helicopter project carries RM6.41bil price tag
KUALA LUMPUR: Weststar Aviation Sdn Bhd’s helicopter supply and maintenance concession for the government carries an estimated project cost of RM6.41 billion.
KUALA LUMPUR: A government-contracted Weststar Aviation Sdn Bhd helicopter project has a projected price tag of RM6.41 billion, according to MARC Ratings. The concession, overseen by the National Security Council, will entail supplying and maintaining 28 helicopters for six government agencies. The venture will be financed through a RM5.76 billion sukuk program and RM640.5 million in shareholder equity.
Weststar Aviation Services Sdn Bhd, the parent company, boasts a solid operating history and manufacturing capabilities. However, risks persist in the delivery timeline and concession payments. The sukuk will be issued incrementally throughout the project, with the first tranche of RM3.83 billion anticipated in 2026. Subsequent issuances amounting to RM1.93 billion are expected in 2027.
Debt servicing will rely on monthly concession payments, while principal repayments commence in 2028. MARC rates the project's debt serviceability at minimum and average coverage ratios of 2.61 and 3.59 times between FY2028 and FY2039, respectively.
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