Symphonet secures RM1.359bil guarantor

KUALA LUMPUR: Although it has yet to secure financiers, Symphonet Sdn Bhd announced that it has a guarantor for US$453mil (RM1.359bil) to fund its three large projects.

Chief executive officer Datuk Baharum Salleh said the three projects an e-commerce trading platform, and two submarine fibre optic cable systems, namely the Johor-Jakarta Cable System (JJCS) and Terengganu-Vietnam Cable System (TVNCS) were financially backed by Indonesia's PT Saras TLP Investment (Saras Group).

“Saras Group will be the guarantor for all those projects. We're still negotiating to secure financing. We've not decided yet... whichever bank that can give you a good deal,” Baharum said at a briefing after a signing ceremony between Symphonet and Saras Group, PT Interkoneksi Internet Indonesia (3i) and Vietnam Hi Technology Development and Investment Joint Stock Company (VITEDI).

Baharum declined to disclose which bank would provide the financing. “We hope to secure the funds as soon as possible subject to the discussion taking place,” he added.

On the cost of the projects, he said about US$300mil would be required for the e-commerce platform, US$100mil for JJCS and US$60mil for TVNCS.

The JJCS will link Iskandar Malaysia in Johor to Jakarta, while the TVNCS is from Kertih, Terengganu, to Vung Tau in Vietnam. The e-commerce project belongs to the Saras Group and would be carried out by Symphonet.

The Indonesian group will also fund the e-commerce project, which will cover at least 480 sites in Indonesia. Baharum said the details of the investment and ownership structure of the underseas cable projects were, however, still being discussed.

Symphonet had earlier announced its joint venture (JV) with 3i on the 1,300km JJCS. Yesterday's event formalised the setting up of the JV company, Malindo Cable Network Pte Ltd. At the same time, Symphonet signed a consortium agreement with VITEDI for the 800km TVNCS.

The TVNCS is meant to serve as the Eastern international gateway into the Indochina markets, while the JJCS was positioned as the Southern gateway that would extend its customers to India, the Middle East, Europe and the United States through strategic partnerships.

When asked on the expected revenue from the projects, Baharum said all three would have recurring income, with the JJCS expected to generate the most.

Without disclosing details, he added that Symphonet and the Saras Group would be announcing four more projects in the near future, including two in Malaysia.

Source: the Star Online 24 August 2011