In this respect, the EPF, which traditionally puts its money in equities and fixed income bonds, is looking at investing directly in infrastructure assets ranging from power plants to ports and highways as long as the investments yield nothing less than 10% returns. “The general rule of thumb we use for infrastructure assets is an internal rate of return (IRR) of 10%. As for Duke, the EPF will fork out a total of RM1.13bil for a 40% stake in the highway to Ekovest Bhd. “The stake sale in Duke is in line with the company’s strategy to monetise its mature infrastructure assets to free up its financial resources,” said Ekovest chairman Tan Sri Lim Kang Hoo. After Duke, the next infrastructure likely to be under the EPF is the Eastern Dispersal Link (EDL) expressway in Johor Baru.

Source: The Star November 08, 2016 23:03 UTC