MALAKOFF ISSUES RM250 MLN ASEAN SUSTAINABILITY SRI SUKUK MURABAHAH

KUALA LUMPUR, May 6 (Bernama) -- Malakoff Corporation Bhd’s (Malakoff) wholly-owned subsidiary, Malakoff Power Bhd (MPower), has successfully issued its inaugural RM250 million ASEAN Sustainability Sustainable and Responsible Investment (SRI) Sukuk Murabahah under its RM1.2 billion Islamic Medium-Term Notes Programme (IMTN).

This is Malakoff’s first sustainability offering under its ASEAN Sustainability SRI Sukuk Murabahah and the first by an independent power producer in Malaysia.

In a joint statement today with Maybank Investment Bank Bhd (Maybank IB), Malakoff said the proceeds from the issuance shall be used to finance eligible projects by MPower and its subsidiaries, in accordance with the group’s sustainable finance framework, which has been in place since December 2023.

“Maybank IB acted as the sole lead manager, facility agent and the sustainability structuring adviser for Malakoff’s sustainable finance framework, while Maybank Islamic Bhd was the shariah adviser for the issuance,” it said.

Malakoff managing director and group chief executive officer (CEO) Anwar Syahrin Abdul Ajib said the transaction marks a significant milestone for MPower, as it represents the group’s first ASEAN Sustainability SRI Sukuk Murabahah issuance via a book-building exercise under its IMTN Programme.

“Given that MPower’s last public Sukuk issuance was in December 2013, we are very encouraged by the strong demand from a diverse investor base for this issuance, which has set a new pricing benchmark for MPower.

“Looking ahead, Malakoff will continue to broaden its asset portfolio through strategic partnerships and circular economy initiatives, and we remain focused on strengthening capabilities, enhancing efficiencies and delivering long-term value in an evolving energy landscape,” he said.

Meanwhile, Maybank IB CEO Michael Oh-Lau said the bank is proud to have lead-managed and advised MPower’s maiden ASEAN Sustainability SRI Sukuk Murabahah issuance, underscoring its commitment to be a sustainability leader in the region.

“The strong response from investors is a testament to the market’s confidence in Malakoff as well as Maybank IB’s ability to secure strong participation despite market seasonality.

“The pricing outcome also positions this landmark transaction as one of the lowest spreads for a corporate within the AA-/AA3 rating band in recent times,” he said.

-- BERNAMA