PAAB proposes RM11.64 billion sukuk programme
The water asset financing company has about RM14.97 billion in infrastructure projects planned, while regulatory approvals for the financing remain pending.
Pengurusan Aset Air Bhd (PAAB) plans to finance its capital spending needs for the coming decade through a proposed RM11.64 billion sukuk programme. The company has water infrastructure projects valued at about RM14.97 billion in its pipeline.
The Islamic medium-term notes programme requires regulatory approvals, and a date for its initial issuance has not been decided. Pengurusan Air SPV Bhd, which acts as PAAB’s funding vehicle and sukuk issuer, will establish the programme.
PAAB selected Maybank Investment Bank Bhd and RHB Investment Bank Bhd to act as the programme’s joint principal advisers and lead arrangers. Maybank Investment Bank also holds the sole sustainability structuring adviser role for PAAB’s sustainable Islamic finance framework.
In a statement jointly issued with the banks, chief executive officer Zulkiflee Omar said the proposal would address PAAB’s longer-term funding requirements and support its sustainability objectives. The company is wholly owned by Minister of Finance Inc and is tasked with financing, developing and managing water infrastructure.
According to the statement, sustainable financing features are expected to cover renewable energy, green infrastructure, affordable basic infrastructure, biodiversity conservation, climate change adaptation, and water and wastewater management.
PAAB’s existing financing includes an Islamic commercial papers programme of RM2 billion, expiring in August 2029. It also has Islamic medium-term notes of RM20 billion maturing in November 2039, alongside government-guaranteed Islamic medium-term notes of RM20 billion due February 2041.
