Press Release

US$53m Loan Gets 374 More CNG Buses on Malaysian Roads

by Natural Gas Vihical Information
Thursday August 14, 2008

Malaysian commuters will soon be serviced by 374 more compressed natural gas (CNG) buses following the signing of a $US53 million syndicated loan agreement between Nadicorp Holdings Sdn Bhd and banks in Korea and Malaysia. Nadicorp is a major shareholder in Konsortium Transnasional Bhd (KTB), the largest bus operator in the country.

Press reports from Malaysia quote executive chairman Datuk Mohd Nadzmi Mohd Salleh as saying that with rising diesel costs and restrictions on fare increases, switching to CNG was the only option to make continued bus operations viable. CNG operations are reportedly expected to reduce costs by almost 25%.

Part of the financing will allow for the manufacture of some buses locally in Malaysia through another Nadicorp Subsidiary, Carefree Premium Sdn Bhd.

Samsung Corporation of Korea has played a significant role in the project brokering technology and financing arrangements with Korean providers.

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