DistantNews
Support us
PAAB Issues World's Largest Blue Sukuk Worth RM720 Million for Water Projects
🇲🇾 Malaysia /Economy & Trade

PAAB Issues World's Largest Blue Sukuk Worth RM720 Million for Water Projects

From Utusan Malaysia · () Malay

Translated from Malay, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • Pengurusan Aset Air Berhad (PAAB) issued the world's largest Blue Sukuk worth RM720 million to fund national water infrastructure projects.
  • The issuance received strong demand from institutional investors, exceeding the initial target and reflecting confidence in PAAB's creditworthiness and sustainable financing strategy.
  • Proceeds will finance projects like water treatment plants and non-revenue water reduction initiatives across several Malaysian states, enhancing water supply reliability.

Pengurusan Aset Air Berhad (PAAB) has successfully issued the world's largest Blue Sukuk, a RM720 million Islamic bond, to finance critical water infrastructure projects across Malaysia. This issuance, conducted through Pengurusan Air SPV Berhad (PASB) under an existing RM2 billion Islamic Commercial Paper Program, saw strong demand from institutional investors, with orders reaching RM770 million.

This Blue Sukuk issuance reflects strong investor confidence in PAAB's credit strength, prudent financial management, and long-term sustainable financing strategy.

— Ir. Zulkiflee OmarChief Executive Officer of PAAB, commenting on the issuance.

The oversubscription, 1.54 times the original RM500 million target before being raised to RM720 million, underscores investor confidence in PAAB's financial standing, prudent management, and long-term sustainable financing strategy. PAAB CEO Ir. Zulkiflee Omar stated that the Blue Sukuk issuance reflects this confidence and reinforces Malaysia's position as a global leader in sustainable Islamic finance.

PAAB will continue to drive sustainable capital that strengthens Malaysia's position as a global leader in sustainable Islamic finance to enhance future water supply assurance.

— Ir. Zulkiflee OmarChief Executive Officer of PAAB, commenting on the issuance.

This issuance marks the first under PAAB's Sustainable Islamic Finance Framework (SIFF), Malaysia's first sustainable Islamic finance framework incorporating blue financing features. Developed with Maybank Investment Bank Berhad as the sole Sustainability Structuring Advisor, the SIFF received a Platinum Sustainable Finance Rating from RAM Sustainability, the highest possible.

The issuance scale sets a new benchmark in sustainable water infrastructure financing.

— Michael Oh-LauChief Executive Officer of Maybank Investment Bank Berhad.

The funds raised will support a portfolio of eligible blue-category projects. These include the Jernih Water Treatment Plant in Melaka, the Tok Bali Water Treatment Plant in Kelantan, Non-Revenue Water (NRW) reduction projects in Negeri Sembilan, and the Kampung Barisan Water Treatment Plant and Seremban Barat distribution pipe project, also in Negeri Sembilan. Other projects include the Sungai Muda Water Treatment Plant in Penang, the Sungai Karangan Water Treatment Plant in Kedah, and the Sultan Iskandar Water Supply Scheme in Johor. These initiatives involve constructing new treatment plants, balancing ponds, new pipelines, reducing NRW, and related infrastructure to improve access to safe and reliable water.

The oversubscription from investors further solidifies PAAB's position as a leader in sustainable financing solutions and reflects confidence in the company's prospects and sustainability governance.

— Michael Oh-LauChief Executive Officer of Maybank Investment Bank Berhad.
DistantNews Editorial

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog