Malakoff Unit Issues RM450 Million SRI Sukuk Murabahah

KUALA LUMPUR, April 28 (Bernama) -- Malakoff Corporation Bhd’s wholly-owned subsidiary, Malakoff Power Bhd (MPower), has issued a RM450 million sustainable and responsible investment (SRI) Sukuk Murabahah under its RM1.2 billion Islamic Medium-Term Notes Programme (IMTN Programme).

In a statement, the water and power producer said the issuance marked ASEAN’s first SRI Sukuk Murabahah dedicated to transition projects, signalling a major evolution in the region’s sustainable finance landscape.

It said that by mobilising capital specifically for the energy transition journey, Malakoff is reinforcing its proactive role in supporting Malaysia’s shift towards a lower-carbon economy.

“Proceeds from the issuance will be utilised to finance eligible green and transitional projects in line with Malakoff’s Sustainable Finance Framework.

“Notably, this includes a project that is aligned with the Amber Tier 2 lifecycle greenhouse gas emissions thresholds under the ASEAN Taxonomy for Sustainable Finance (Version 2), providing a high level of credibility for the transaction’s transition credentials,” it added.

Malakoff said Maybank Investment Bank Bhd acted as the sole lead manager, facility agent and sustainability structuring adviser, while Maybank Islamic Bhd served as the Shariah adviser.

It noted that the issuance attracted overwhelming demand, with the order book peaking at close to five times and achieving final oversubscription of 4.5 times, despite the prevailing volatile market environment.

This robust interest allowed MPower to set a new pricing benchmark, with final pricing notably lower than its 2025 issuance, it said.

-- BERNAMA