KUALA LUMPUR (April 28): Malakoff Corporation Bhd’s (KL:MALAKOF) wholly-owned subsidiary, Malakoff Power Bhd, has successfully raised RM450 million through the issuance of Asean’s first SRI Sukuk Murabahah, marking a landmark in the region’s sustainable finance landscape.

The sukuk, issued under the subsidiary’s RM1.2 billion Islamic Medium-Term Notes Programme, aligns with Malaysia’s National Energy Transition Roadmap (NETR) and the nation’s Net Zero Emissions 2050 target, thus supporting Malakoff’s strategic transformation towards a cleaner energy portfolio.

“This issuance is a clear reflection of Malakoff’s future-ready trajectory. We are strengthening our portfolio to ensure we generate and deliver reliable power while progressively scaling our lower-carbon energy platform.

“Our approach is deliberate; we are expanding renewable capacity through solar and hydropower, while utilising high-efficiency gas as a critical transition fuel,” said the group’s chief executive officer Syahrunizam Samsudin in a statement on Tuesday.

Maybank Investment Bank chief executive officer Michael Oh-Lau stated that the landmark transaction broadens Asean’s sustainable finance landscape and reflects growing investor appetite for credible transition financing.

“In line with Maybank’s ROAR30 strategic plan to mobilise RM300 billion in sustainable finance by 2030, we remain committed to supporting impactful financing that drives sustainable growth for our clients, communities and the broader economy,” he further added.

With an order book peaking at nearly five times, the sukuk was oversubscribed by 4.5 times. The proceeds will be used to fund eligible green and transitional projects under Malakoff’s sustainable finance framework, including initiatives aligned with the Asean Taxonomy for Sustainable Finance (Version 2).

Maybank Investment Bank is acting as the sole lead manager, facility agent and sustainability structuring adviser, while Maybank Islamic Bank serves as shariah adviser for the issuance.