GEORGE TOWN: Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP) has unveiled its inaugural RM5 billion Islamic Medium-Term Notes (IMTN) Programme to enhance water infrastructure and long-term supply stability in Penang. The sukuk, structured under the Shariah-compliant Sukuk Wakalah model, aligns with PBAPP’s newly launched Sustainable Finance Framework.
Chief Minister Chow Kon Yeow, who chairs PBAPP, stated that the sukuk issuance will provide long-term capital for critical water projects while adhering to sustainable and Islamic financing principles. He highlighted that the programme received a AAA/Stable credit rating from RAM Rating Services Bhd, with the framework earning a Gold Sustainable Finance Rating from RAV Sustainability Sdn Bhd.
United Overseas Bank (UOB) Malaysia and Maybank Investment Bank Bhd (Maybank IB) are the joint principal advisers and lead managers for the sukuk. Maybank IB also acts as the sole sustainability structuring adviser.
Proceeds will fund PBAPP’s Water Contingency Plan 2030, operational costs, refinancing, and eligible green initiatives. PBAPP is the first Penang state-linked agency to adopt both a sukuk programme and a Sustainable Finance Framework.
UOB Malaysia’s Andy Cheah emphasised the role of banks in mobilising sustainable financing, while Maybank IB’s Michael Oh-Lau noted Malaysia’s robust debt capital market, with over RM120 billion in annual private debt issuances. - Bernama
