KUALA LUMPUR (July 3): UEM Group Bhd, a wholly owned unit of Khazanah Nasional Bhd, is establishing a RM7 billion sustainable and responsible investment sukuk programme to finance UEM Group’s foray into green industries.

The proceeds will be used to finance investments to be undertaken by its newly formed and wholly owned subsidiary UEM Lestra Bhd, it said in a statement on Monday (July 3).

Over the next five years, the company aims to grow its current assets organically and form strategic partnerships such as joint ventures to execute projects in four sectors: renewable energy and storage, integrated energy solutions, green or electric mobility, and waste management and recycling.

“We plan to strengthen the domestic economic ecosystem and build a competitive green business with a direct and active ownership approach, and ultimately achieve commercial returns,” said UEM Group.  

According to the company, it has identified several capable local and international green energy players with commendable track record and presence across the country that are seeking the involvement of a strategic investor to expand their operations.

Further, it is currently in talks with several foreign investors who are keen to invest in the development of renewable energy in Malaysia, details of which will be announced before the end of this year.

“We intend to lead the country’s decarbonisation agenda, and this includes supporting the government’s efforts to transition towards sustainable energy solutions and to be a carbon-neutral nation, achieving a 70% renewable energy capacity in the country’s electricity supply by 2050,” said UEM Group managing director Datuk Mohd Izani Ghani.

“We will also be working towards enhancing the domestic green capabilities over the long term and increasing the country’s competitiveness by upskilling and developing local workforce talent. Our aim is twofold — to create more jobs and offer high-quality employment opportunities,” he added.