KUALA LUMPUR (Oct 23): Pengurusan Aset Air Bhd plans to set up a new sukuk programme worth RM11.64 billion to support its capital expenditure requirements over the next decade.
The national water asset financing company, or PAAB, appointed Maybank Investment Bank Bhd and RHB Investment Bank Bhd as joint principal advisers and lead arrangers for the proposed Islamic medium-term notes. PAAB has a pipeline of about RM14.97 billion in water infrastructure projects.
“The proposed programme would support the organisation’s long-term financing requirements while advancing its sustainability agenda,” chief executive officer Zulkiflee Omar said in a joint statement with the banks.
PAAB, wholly owned by Minister of Finance Inc, is responsible for financing, developing and managing water infrastructure. The sukuk programme, meanwhile, will be established under the agency funding vehicle and sukuk issuer Pengurusan Air SPV Bhd.
While the programme is still subject to regulatory approvals, the expected timing for the first issuance has also yet to be determined.
The programme is expected to incorporate sustainable financing features covering investments in water and wastewater management, biodiversity conservation, climate change adaptation, renewable energy, green infrastructure and affordable basic infrastructure, the statement read.
PAAB has three financing programmes: RM2 billion Islamic commercial papers that expire in August 2029, RM20 billion Islamic medium-term notes that mature in November 2039, and RM20 billion government-guaranteed Islamic medium-term notes due February 2041.
Friday’s event separately commemorated PAAB’s inaugural RM300 million placement under Maybank Islamic Bhd’s Islamic Sustainable Fixed Deposit-i programme on Aug 26. The fund came from part of the issued RM720 million in blue sukuk under the commercial papers programme.
Maybank Investment Bank also serves as the sole sustainability structuring adviser for PAAB’s sustainable Islamic finance framework.
“We are pleased to support PAAB in expanding its access to sustainable and blue financing solutions, helping translate its sustainability ambitions into tangible infrastructure outcomes,” Maybank Investment Bank CEO Michael Oh-Lau added.