PETALING JAYA: Pengerang Energy Complex (PEC) has secured US$3.5 billion (RM15.5 billion) project financing from leading export credit agencies (ECA) across North America, Western and Southern Europe, and Asia, as well as Islamic financing from entities of the Islamic Development Bank (IsDB).
Representatives of each of the five ECA – Export-Import Bank of the United States, Euler Hermes AG, Italian Export Credit Agency, Compañía Española de Seguros de Crédito a la Exportación, Export-Import Bank of Malaysia (Exim Bank Malaysia) and IsDB were in Kuala Lumpur today to ratify the terms of the financing agreements with representatives from PEC, which is being developed by Singapore-based petrochemicals, green energy and natural resources conglomerate, ChemOne Group.
The event was attended by leading European and international banks that have confirmed participation in the ECA-guaranteed tranches as well as the Islamic financing tranches.
The capital secured will be channelled towards implementation of the US$5.3 billion latest generation, low carbon petrochemicals facility designed to produce 2.6 million metric tons per annum (mmtpa) of aromatic products and 3 mmtpa of associated energy products.
Construction will start in mid-2025 and the project will go on stream in the fourth quarter of 2028.
Pengerang Energy Complex Sdn Bhd CEO Alwyn Bowden said: “We are pleased to have secured this significant round of project financing from these five leading global export credit agencies and Islamic Development Bank entities, which will help further bolster the financial stability of PEC and accelerate progress for the project which is already well underway in terms of planning and engineering.”
He added that they are grateful for the confidence their partners have shown in this project, and the discussions held yesterday will enable them to fully conclude the debt financing for the project within the coming few months and move to commencement of construction for the global benchmark-setting project by the middle of next year.
“As the petrochemicals industry is set to grow exponentially, alongside rapid economic development across East Asia and Southeast Asia, the PEC project is poised to form a key driver of demand for quality aromatics in the medium to long term. PEC is strategically located to serve the regional Asian markets and satisfy forecasted demand,” he said.
Exim Bank Malaysia director Raymond Fam said they are proud to play a pivotal role in the financing of the Pengerang Energy Complex’s new facility, a landmark project that underscores Malaysia’s commitment to advancing low-carbon industrial innovation.
This initiative, he added, aligns with their sustainability commitment and is instrumental in showcasing how global collaboration can drive transformative change in high-growth sectors like petrochemicals.
“Together with our international partners, we are enabling a state-of-the-art facility that not only enhances Malaysia’s economic resilience but also sets a benchmark for sustainable industrial practices in the region,” said Fam.
