KUALA LUMPUR (Sept 17): Sabah Energy Corporation Sdn Bhd (SEC) has raised RM350 million through its maiden sukuk issuance under a RM3 billion sukuk wakalah programme.

The issuance was announced in a joint statement with Malayan Banking Bhd (KL:MAYBANK). 

The sukuk was rated AAA with a stable outlook by RAM Rating Services Bhd and was priced through book-building, with demand reaching 2.2 times the amount offered.

Maybank Investment Bank Bhd was appointed as the sole principal adviser, lead arranger, lead manager and sustainability structure adviser, as well as shariah adviser and facility agent. 

“This landmark issuance broadens and diversifies SEC's access to long-term ringgit funding while raising the profile of both SEC and Sabah among domestic and international institutional investors. The strong over-subscription reflects investors' confidence in SEC's credit strength and growth trajectory," said Maybank IB chief executive officer Michael Oh-Lau.

Maybank said the issuance gives the Sabah state-owned energy company a longer-term funding source as it plans investments across its energy businesses, including natural gas infrastructure, power generation and renewable energy.

SEC said the funding platform will support its strategic roadmap called PETA (Pelan Strategik dan Hala Tuju) 2030, which covers the expansion of its gas and infrastructure operations, power generation and renewable energy activities, as well as investments across Sabah's energy value chain.

“In turn, this supports the broader outcomes envisaged under SERAMP 2040: stronger energy security, a faster energy transition and more reliable supply for Sabah," said SEC group chief executive officer Datuk Adzmir Abd Rahman. 

SEC has been Sabah's sole natural gas aggregator, transporter and distributor since its corporatisation in 1997. 

It has since expanded into power generation, renewable energy and offshore oil and gas support services.