PETALING JAYA: Nextgreen Global Bhd has sought a RM400 million funding from Asia Capital Investment Fund (ACIF) for investment in green technology projects.
This comes after the group terminated its memorandum of understanding with China Nuclear Industry Huaxing Construction Co Ltd for the cooperation to develop and manage Phase 2 and 3 of the Green Technology Park (GTP) Pekan Project.
Nextgreen told Bursa Malaysia that it had on October 16 entered into an investment agreement with ACIF, where the RM400 million will be injected into several special purpose vehicle (SPV) companies to be incorporated and 100% owned by Nextgreen.
The SPV companies are assigned to manage the GTP Pekan project and two other green technology projects in Johor and Sarawak which are currently in the pipeline.
Nextgreen said the investment will be in the form of share capital injection (RM280 million) through the subscription of 280 million new cumulative redeemable preference shares at an issue price of RM1.00 each as well as loan (RM120 million).
The development of the GTP Pekan Project is divided into five phases and it is currently entering into Phase 2 which entails the construction and development of pulp and paper mill with a production capacity of 100,000 metric tonnes of box liner paper and 120,000 metric tonnes of corrugated paper.
The fund from the investment will mainly be utilised for working capital requirements of the projects and to cover other operational costs.
The principles activities of ACIF is to raise funds for investment and the management and investment of funds particularly in listed securities of companies producing green (eco-friendly) products.
At 2.35pm, Nextgreen’s share price was trading 2.5 sen or 6% higher at 44 sen on 4.59 million shares done.
Source: The Sun Daily