Toll concessionaire ALR clears RM2.1b in debt, eyes early highway handover to Putrajaya

KUALA LUMPUR, Oct 21 — Amanat Lebuhraya Rakyat Berhad (ALR) has crossed the RM2 billion threshold in cumulative sukuk principal and profit repayments, positioning the private not-for-profit firm to return four major Klang Valley toll highways to the government by 2033, five years ahead of schedule.

The milestone validates ALR’s enterprise model of using surplus toll collection solely to extinguish acquisition debt without paying dividends to shareholders, clearing the path for the state to take back the Kesas Expressway, Lebuhraya Damansara-Puchong (LITRAK), Western Kuala Lumpur Traffic Dispersal Scheme (SPRINT), and the Stormwater Management and Road Tunnel (SMART).

“On October 13, 2026, ALR made its eight sukuk payment of RM513.8 million comprising RM390 million to Sukuk Principal and RM123.8 million to Sukuk Profit, bringing its cumulative Sukuk Principal and Profit payments to more than RM2.149 billion.

“The Sustainability Sukuk Murabahah Programme carries total sukuk principal and profit obligations of RM7.935 billion,” ALR group chief executive officer Muhammad Nizam Alias told a media briefing at the SMART headquarters here today.

The latest debt servicing payment follows an earlier benchmark in April 2025, when cumulative payments touched RM1.021 billion.

“Surpassing RM2 billion in cumulative sukuk payments represents an important milestone in ALR’s journey.

“It demonstrates our continued financial discipline and commitment to meeting our obligations while remaining focused on the mandate entrusted to us to maintain toll affordability, eliminate the need for government compensation payments and accelerate the return of the highways to the government and the rakyat,” Muhammad Nizam said.

He explained that because ALR distributes no dividends, all net operational income flows directly toward servicing liabilities and sustaining day-to-day asset management.

“The milestone reflects the progress ALR has made since the issuance of the Sustainability Sukuk Murabahah in October 2022 and reinforces the connection between the group’s financial discipline and its long-term public-interest mandate.

“ALR issued RM5.5 billion in nominal value of AAA-rated Senior Sustainable and Responsible Investment Sukuk Murabahah on October 13, 2022 to finance the acquisition of four major urban highway concessionaires — KESAS, LITRAK, SPRINT and SMART.

“The acquisition was undertaken without the use of public funds or a government guarantee,” he said.

Established strictly as a transitional custodial entity, ALR freezes toll charges at existing gazetted levels throughout the tenure rather than imposing contractual hikes that require federal compensation payouts.

“Under its model, toll rates will remain at current levels until the respective concessions end, while surplus revenue is channelled towards the early redemption of debt financing,” he said.

Strong commuter traffic across the four networks has bolstered debt redemption timelines, setting up a potential full settlement well before the paper’s final maturity date in 2038.

“Under the sukuk programme, the longest maturity is 15 years, ending in 2038.

“However, based on our projections, the surplus accumulated each year could be sufficient by 2033 to settle the remaining sukuk obligations in a lump sum.

“The sooner we settle the entire sukuk amount, the sooner we can return the highways to the government.

“The government can then decide what to do with the highways, whether to charge nominal toll rates or make them toll-free.”

Alongside its role as a key bypass artery easing gridlock between Kuala Lumpur and the southern corridor, the dual-purpose SMART Tunnel plays a vital flood mitigation function for the city centre.

Since commencing operations in May 2007, the subterranean tunnel has diverted 266.03 million cubic metres of deluge over 685 flood-activation events, preventing an estimated RM4.94 billion in structural damage and public losses.

“Operating and maintaining critical infrastructure such as the SMART Tunnel required substantial financial resources.

“Nevertheless, it remained committed to its social responsibilities and continued to balance operational expenditure with toll revenue while meeting its sukuk obligations,” Muhammad Nizam said.

ALR maintains that its non-profit holding structure will continue to balance high engineering maintenance standards with steady debt retirement, ensuring motorists face no toll increases until the four concessions are formally returned to Putrajaya.