BERAPIT MOBILITY SDN. BHD.

Additional Information

Berapit Mobility Sdn Bhd (BMSB) is a wholly-owned subsidiary of SMH Rail Sdn Bhd. BMSB will purchase and refurbish/replace 50 locomotives (including six spares) and 246 wagons from RAC under sale-and-leaseback agreements. BMSB's average projected annual operating cash flow of RM101.9 million is more than sufficient to meet sukuk principal repayments for the first 15 years and provides headroom for cash build-up for subsequent years when lease rates decline. Cash flow predictability is underpinned by BMSB’s entitlement to at least 24 days of monthly lease payments, as long as it meets contracted performance requirements for rolling stock availability. SMH Rail’s experience in rolling stock manufacturing and MRO would ensure BMSB has the capacity to maintain the rolling stock assets to meet the required availability and performance standards. To further mitigate risks of loss or damages, including force majeure, to the wagons and locomotives, BMSB plans to secure industry-standard mobile plant and equipment policies on its locomotives and wagons.