NPE Launches World's First Sustainability-Linked Sukuk for Highway Project

New Pantai Expressway Sdn. Bhd. (NPE), a subsidiary of IJM Corporation Berhad, has pioneered the world's first sustainability-linked sukuk (SLS) for a highway project, issuing RM54 million in financing. This innovative move sets a new global benchmark for sustainable infrastructure financing.

The sukuk is issued under a RM1.42 billion unrated Islamic Medium Term Note (IMTN) program. It directly links the project's sustainability performance to its financing terms through key performance indicators (KPIs), marking a significant innovation in Islamic finance and sustainable funding markets. The funds raised will support the construction of the New Pantai Highway Extension (NPE2), a 6.4-kilometer elevated highway that forms part of Kuala Lumpur's 2040 Master Traffic Plan.

Scheduled for completion by the end of 2029, the NPE2 project will connect the Pantai Dalam Toll Plaza with the Istana Negara intersection via Jalan Syed Putra. This extension is expected to significantly enhance traffic flow and improve access to Kuala Lumpur's central business district. The construction is being managed by IJM Construction Sdn. Bhd. under a design-and-build contract awarded in November 2025, and the project is currently on schedule.

Sustainability is a key focus in the highway's construction. It will incorporate precast concrete components, reusable steel molds, a rainwater harvesting system, solar energy applications, and energy-efficient lighting to minimize operational energy consumption. Datuk Lee Chun Fai, Group CEO and Managing Director of IJM, stated that the sukuk issuance reflects the company's commitment to integrating measurable accountability into all its projects. He added that beyond enhancing connectivity in the Klang Valley, the financing structure ensures worker safety and sustainability performance are integral to the project's success. Maybank Investment Bank Berhad and CIMB Investment Bank Berhad served as the principal advisors, arrangers, and joint sustainability structuring advisors for the transaction.