ChemOne Secures US$350 Mln Islamic Insurance Cover From ISDB's Unit

KUALA LUMPUR, July 8 (Bernama) -- ChemOne Group has secured a US$350 million (US$1 = RM4.23) Islamic insurance cover from the Islamic Development Bank (IsDB)'s unit, Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

In a statement today, the Singapore-based petrochemicals, green energy and natural resources conglomerate said the cover is designed to support Islamic banks involved in the project financing of the Pengerang Energy Complex Sdn Bhd (PEC), highlighting strong institutional confidence and the project's long-term strategic value to Johor.

The ICIEC cover is structured under a Murabahah financing facility, providing 90 per cent cover on both principal and profit -- significantly de-risking the transaction for participating Islamic banks, including the National Bank of Kuwait, the Qatar National Bank, Al Rajhi Bank Malaysia and Al Rajhi Bank Saudi Arabia.

ChemOne chief financial officer Mayank Vishnoi said that ICIEC’s support provides a strong validation of PEC’s financial strength and its far-reaching development impact.

"PEC will drive regional industrial growth, create thousands of jobs and support regional value chains to all while adhering to global standards for sustainable and responsible financing," he said.

Additionally, ChemOne said that the IsDB Group, through the IsDB and the Islamic Corporation for the Development of the Private Sector (ICD), has committed a direct investment of US$150 million via the Istisna-Ijara structures. 

"With this, the IsDB Group’s total support for PEC, including both direct investment and credit enhancement, exceeds US$500 million, making it one of the group’s most significant engagements in Southeast Asia. 

"ICIEC’s involvement is underpinned by strong financial fundamentals, backed by Standard & Poor's AA- and Moody’s Aa3 credit ratings and reflects its core mandate to promote investment across member states," it said.

-- BERNAMA