Malakoff issues inaugural RM250m Asean green sukuk
KUALA LUMPUR: Malakoff Corporation Bhd, through its wholly owned subsidiary Malakoff Power Bhd (MPower) has issued its inaugural RM250 million Asean Sustainability SRI Sukuk Murabahah (Issuance) under its RM1.2 billion Islamic Medium-Term Notes Programme (IMTN).
This is Malakoff's first sustainability offering under its Asean Sustainability SRI Sukuk Murabahah and the first by an independent power producer in Malaysia.
The proceeds from the issuance shall be utilised to finance eligible projects by MPower, Malakoff and its subsidiaries, in accordance with Malakoff's Sustainable Finance Framework, which has been in place since December 2023.
Maybank Investment Bank Bhd (Maybank IB) acted as the sole lead manager and facility agent while Maybank Islamic Bhd was the shariah adviser for the Issuance.
Maybank IB was also the sustainability structuring adviser for Malakoff's Sustainable Finance Framework.
As part of its broader commitment to sustainability and energy transition, Malakoff in a statement yesterday said it has made significant strides over the past year in advancing its sustainability commitment.
The group achieved a 3.7% year on-year reduction in greenhouse gas emissions intensity moderately contributed as well by
a 17.0% reduction in Scope 2 emissions with respect to the Group's electricity consumption.
It also launched its flagship Biomass Co-firing Project at the 2,100 MW Tanjung Bin Power Plant for a trial run under the National Energy Transformation Roadmap.
The project achieved a 2% biomass co-firing ratio.
Malakoff is committed to scale up the biomass co-firing to a higher ratio of 15% by 2027.
This milestone is projected to reduce carbon dioxide (CO₂) emissions by approximately 755,000 tonnes annually, which is equivalent to the carbon offset of 142 million mature trees.
In parallel, the group commenced construction of three run-of-river small hydropower plants along Sungai Galas in Kelantan, expected to offset a further 272,424 tonnes of CO₂ per year.
The group also continued expanding its renewable energy (RE) portfolio, achieving 173 MW in total RE capacity – a 496.6% increase from its 2021 baseline.
This includes 17.4 MWp of completed commercial and industrial solar installations and the acquisition of equity stakes in ZEC Solar Sdn Bhd (51%) and TJZ Suria Sdn Bhd (49%), contributing an additional 29 MW.
Malakoff managing director and group CEO Anwar Syahrin Abdul Ajib (pic) said: 'This transaction marks a significant milestone for Malakoff Power, as it represents our first Asean Sustainability SRI Sukuk Murabahah issuance via a book-building exercise under our IMTN Programme.
'Given that MPower's last public sukuk issuance was in December 2013, we are very encouraged by the strong demand from
a diverse investor base for this issuance, which has set a new pricing benchmark for MPower.
'Looking ahead, Malakoff will continue
to broaden its assets portfolio through strategic partnerships and circular economy initiatives.
'As a trusted partner in Malaysia's green transition, we remain focused on strengthening capabilities, enhancing efficiencies and delivering long-term value in an evolving energy landscape'.
On the back of growing demand for sustainability assets and the scarcity value of Sukuk offerings by MPower, the transaction was oversubscribed by 10.34 times.
Supported by the strong orderbook, the price guidance was revised and tightened multiple times.
The issuance was finally priced at MGS +70 basis points across both tenures of 7 and 10 years, which is 30 basis points lower than the upper end of the initial price guidance.
Maybank Investment Bank Bhd CEO Michael Oh-Lau said: 'Maybank Investment Bank is proud to have lead-managed and advised Malakoff Power's maiden Asean Sustainability SRI Sukuk Murabahah issuance, underscoring our commitment to be a sustainability leader in the region.
'The strong response from investors is testament of the market's confidence in Malakoff as well as Maybank IB's ability to secure strong participation despite market seasonality.
'The pricing outcome also positions this landmark transaction as one of the lowest spreads for a corporate within the AA-/AA3 rating band in recent times.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
20 hours ago
- The Star
Widow in a rut over unpaid housing loans
PETALING JAYA: It was a proud moment for factory worker R. Devika when her husband signed the documents for their first home, costing RM250,000, in 2012. The lorry driver diligently serviced the housing loan but tragedy struck five years later. A motorcycle accident took his life, leaving his wife to care for their three children with a monthly income of less than RM2,000 from the factory. Distraught and reeling over the loss of her husband, she did not pay much attention to several bank reminders of the unpaid housing loan repayments until a foreclosure notice was delivered six months later. Accompanied by a relative, she visited the bank and was dealt with a second blow when she learned that her husband had not insured the mortgage and the house would be auctioned. Without any savings, Devika, who is in her 40s, was devastated as she faced the loss of her family home in Rawang. Fortunately, her brother-in-law stepped in. He offered to service the loan on condition that he would take ownership of the property once Devika's children reached adulthood. Left with no other choice, she agreed. Devika's situation was related to The Star by a relative of hers, who declined to be named. Unfortunately, she is just among the thousands of Malaysians, especially those from low-income families, who have overlooked the importance of getting a mortgage reducing term assurance or mortgage level term assurance, said insurance consultant Leonard Tan. 'They see it as an additional financial burden rather than an essential protection. 'But such an insurance is a small price to pay for an asset we have worked so hard to own,' he said.
The Star
2 days ago
- The Star
Cautious optimism in Philippine stocks
FOR investors, positioning for a rebound in the Philippine equity market will require patience, selectivity and a bias towards defensiveness and consumer resilience. A pick-up in earnings momentum is expected later in the year – but for now, Maybank Investment Bank Group Research (Maybank IB) suggests investors remain cautiously optimistic. The investment banking group notes that the first-quarter (1Q25) reporting season ended on a muted note, with PSE Index constituents delivering 4.3% year-on-year (y-o-y) earnings growth – a figure that falls short of its full-year expectation of around +10%.
New Straits Times
3 days ago
- New Straits Times
Padini's Q3 earnings beat forecasts on stronger margins
KUALA LUMPUR: Padini Holdings Bhd's third-quarter (Q3) results for the financial year ending June 30, 2025 (FY25), exceeded expectations due to stronger-than-anticipated gross profit margins, said Maybank Investment Bank Bhd (Maybank IB). The company reported a net profit of RM73 million for Q3, bringing its cumulative nine-month profit to RM152 million. This represents 92 per cent of Maybank IB's full-year forecast and 99 per cent of consensus estimates. "The earnings beat was primarily driven by better-than-expected gross profit margins. Padini also declared a fourth interim dividend per share (DPS) of 1.8 sen and a special DPS of one sen," Maybank IB said in a note. Looking ahead, the research house expects sequential earnings to be seasonally weaker in the absence of major festivities, though the recent appreciation of the ringgit against the renminbi could offer some cushion. "We have raised our FY25 earnings forecast by five per cent to reflect stronger gross margins, while maintaining our FY26 and FY27 estimates. Rolling forward our valuation to FY26, we raise our target price to RM2.85," it said. Maybank IB maintained its 'Buy' call on Padini, citing its mass-market positioning and affordability, which make it a key beneficiary of rising consumer disposable income.
