KUALA LUMPUR (Nov 9): Permodalan Nasional Bhd, via its wholly owned unit PNB Merdeka Ventures Sdn Bhd, is planning to raise up to RM2 billion via a 15 year secured green sukuk to fund its Merdeka PNB118 Tower project.

It is raising the sum for the 83-storey office space, which forms part of the Tower, via its unrated sukuk programme, known as Merdeka Asean Green SRI Sukuk Programme, a statement from PNB yesterday showed.

The sukuk programme is the first adopter of the Asean Green Bond Standards launched by the Securities Commission Malaysia, and will comply with the requirements of the Sustainable Responsible Investment Sukuk under SC's guidelines. MIDF Amanah Investment Bank Bhd is the principal adviser and lead arranger for the sukuk programme.

"We are pleased that PNB Merdeka Ventures Sdn Bhd is an early adopter in Malaysia to issue the Merdeka Asean Green SRI Sukuk Programme. The Asean green sukuk validates PNB's commitment to develop Warisan Merdeka as a sustainable and environmentally-friendly project," said Tengku Datuk Ab Aziz Tengku Mahmud, PNBMV chief executive officer.

Meanwhile, World Bank Group Representative to Malaysia, Faris Hadad-Zervos, said: “The issuance of the first green sukuk by a Government-Linked Investment Corporation issuer marks the entry of green sukuk into the mainstream sukuk market." 

"The fact that it is financing a green building highlights that green sukuk is not just about renewable energy, but also for a wider range of environmentally-friendly projects. The World Bank Group will continue to be a close
partner to Malaysia in the development of this innovative approach to sustainable finance,” Hadad-Zervos added.