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New Straits Times

ChemOne secures US$350mil ICIEC cover for Pengerang project

KUALA LUMPUR: Singapore-headquartered petrochemicals company ChemOne Group has obtained US$350 million in insurance coverage from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) to support the financing of its Pengerang Energy Complex (PEC) in Johor, Malaysia. ChemOne said the insurance cover is designed to facilitate the involvement of Islamic banks in the project's financing, reflecting strong institutional confidence in the PEC's long-term strategic value for the region. ICIEC is a wholly owned subsidiary of the Islamic Development Bank (IsDB). According to the company, the ICIEC insurance cover is structured under a Murabaha financing facility, offering 90 per cent coverage on both the principal and profit. This significantly reduces the risk for the participating Islamic banks, which include the National Bank of Kuwait (NBK), Qatar National Bank (QNB), Al Rajhi Bank Malaysia, and Al Rajhi Bank KSA. "In addition, the IsDB Group, through IsDB and the Islamic Corporation for the Development of the Private Sector (ICD), has reinforced its commitment through a direct investment of US$150 million via Istisna-Ijara structures. "The IsDB Group's total support for PEC, combining direct investments and credit enhancement, now stands at over US$500 million, marking one of the group's most substantial engagements in Southeast Asia," it added. ChemOne chief financial officer Mayank Vishnoi said ICIEC's backing serves as a strong endorsement of PEC's financial robustness and its broad developmental significance. "PEC will drive regional industrial growth, create thousands of jobs, and support regional value chains, all while adhering to global standards for sustainable and responsible financing. "We are honoured to lead one of Asia's most impactful private-sector-led financings," Vishnoi said.