PNB Merdeka Ventures (PNBMV) tapped Malaysia’s ringgit sukuk market with the inaugural MYR6 billion sustainability merdeka sukuk wakala under its merdeka sukuk wakala programme, a landmark financing for the ongoing development of Kuala Lumpur’s Merdeka 118 precinct.
The programme is rated AAAIS by Malaysian Rating Corporation Berhad (MARC) Ratings with a stable outlook, supported by Permodalan Nasional Berhad (PNB)’s rolling guarantee, and is aligned with PNBMV’s Gold-assessed Sustainable Finance Framework.
The framework channels proceeds towards eligible green and social categories, including green buildings, energy efficiency, sustainable water and wastewater management, clean transportation, climate adaptation and socioeconomic advancement.
The transaction strengthens PNBMV’s long-term capital structure, extends its funding profile and supports one of Asean’s most prominent sustainable real-estate developments
The issuance comprised five-, seven-, 10-, 15- and 20-year tranches, with the 20-year tranche placed privately. Strong institutional demand supported an upsizing to MYR6 billion, with a 1.17 times bid-to-cover ratio and participation from more than 40 investors, including government-linked companies, financial institutions, asset managers and insurers.
Proceeds are being used to refinance PNBMV’s existing sukuk and raise fresh capital for the ongoing development of the Merdeka 118 precinct. The transaction strengthens PNBMV’s long-term capital structure, extends its funding profile out to 2045 and supports one of Asean’s most prominent sustainable real-estate developments, anchored by the triple-platinum green-rated Merdeka 118 tower.
CIMB acted as principal adviser, lead arranger, bookrunner and sustainability structuring adviser, orchestrating the consent solicitation and the successful jumbo issuance.
