Latest news with #IMTN
The Star
08-07-2025
- Business
- The Star
Bursa Malaysia dips as Trump's 25% tariff on Malaysia rattles investors
From left: Maybank global banking group CEO Datuk John Chong, Maybank Investment Bank Bhd CEO Michael Oh-Lau, Perbadanan Bekalan Air Holdings Bhd group CEO Datuk Ir Pathmanathan K, Penang Chief Minister Chow Kon Yeow, UOB Malaysia CEO Ng Wei Wei and UOB Malaysia head of wholesale banking, northern area centre Teoh Soon Beng. KUALA LUMPUR: United Overseas Bank (Malaysia) Bhd (UOB Malaysia) and Maybank Investment Bank Bhd (Maybank IB) have been appointed as joint principal advisers, joint lead arrangers, and joint lead managers for Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP)'s inaugural RM5bil Islamic Medium-Term Notes (IMTN) Programme (Sukuk Programme). Maybank IB also served as the sole sustainability structuring adviser for PBAPP's new Sustainable Finance Framework, which follows guidelines from the Securities Commission and other regional and international sustainable finance standards. In a joint statement, UOB Malaysia country head of wholesale banking Andy Cheah said the RM5bil sukuk programme will fund critical water projects to ensure long-term water security for Penang, addressing rising demand and challenges such as limited water resources and climate change. 'The sukuk programme also highlights the important role banks play in mobilising capital for sustainable financing and demonstrates how we leveraged our capabilities to deliver real change in public sector infrastructure,' he added. Maybank IB chief executive officer Michael Oh-Lau: 'Maybank is honoured to support PBAPP for the simultaneous establishment of its sukuk programme and Sustainable Finance Framework — a historic first for Penang, and one that sets a strong precedent for other state government-linked companies.' 'Malaysia's debt capital markets remain one of the most developed and liquid in the region, with over RM120bil in private debt securities issued annually coupled with a steady growth of sustainability-labelled issuances year on year. Through this sukuk programme, PBAPP is now well-positioned to benefit from deep and diverse investor liquidity, competitive pricing and greater funding flexibility over time.' Proceeds from the sukuk will fund PBAPP's Water Contingency Plan 2030 (WCP 2030), support capital and operational expenses including refinancing, and finance eligible green and social initiatives under its Sustainable Finance Framework. PBAPP is the first Penang state agency to launch both a sukuk programme and a Sustainable Finance Framework. The shariah-compliant sukuk Wakalah structure allows it to raise sustainable, long-term funding from Malaysia's capital markets. PBAPP's sukuk programme received a AAA/Stable rating from RAM Ratings Services Bhd, reflecting strong credit fundamentals. Its Sustainable Finance Framework also earned a Gold rating from RAM Sustainability for strong governance, transparency, and alignment with global standards.
The Star
08-07-2025
- Business
- The Star
UOB Malaysia, Maybank IB support PBAPP's RM5bil sukuk for water infrastructure
From left: Maybank global banking group CEO Datuk John Chong, Maybank Investment Bank Bhd CEO Michael Oh-Lau, Perbadanan Bekalan Air Holdings Bhd group CEO Datuk Ir Pathmanathan K, Penang Chief Minister Chow Kon Yeow, UOB Malaysia CEO Ng Wei Wei and UOB Malaysia head of wholesale banking, northern area centre Teoh Soon Beng. KUALA LUMPUR: United Overseas Bank (Malaysia) Bhd (UOB Malaysia) and Maybank Investment Bank Bhd (Maybank IB) have been appointed as joint principal advisers, joint lead arrangers, and joint lead managers for Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP)'s inaugural RM5bil Islamic Medium-Term Notes (IMTN) Programme (Sukuk Programme). Maybank IB also served as the sole sustainability structuring adviser for PBAPP's new Sustainable Finance Framework, which follows guidelines from the Securities Commission and other regional and international sustainable finance standards. In a joint statement, UOB Malaysia country head of wholesale banking Andy Cheah said the RM5bil sukuk programme will fund critical water projects to ensure long-term water security for Penang, addressing rising demand and challenges such as limited water resources and climate change. 'The sukuk programme also highlights the important role banks play in mobilising capital for sustainable financing and demonstrates how we leveraged our capabilities to deliver real change in public sector infrastructure,' he added. Maybank IB chief executive officer Michael Oh-Lau: 'Maybank is honoured to support PBAPP for the simultaneous establishment of its sukuk programme and Sustainable Finance Framework — a historic first for Penang, and one that sets a strong precedent for other state government-linked companies.' 'Malaysia's debt capital markets remain one of the most developed and liquid in the region, with over RM120bil in private debt securities issued annually coupled with a steady growth of sustainability-labelled issuances year on year. Through this sukuk programme, PBAPP is now well-positioned to benefit from deep and diverse investor liquidity, competitive pricing and greater funding flexibility over time.' Proceeds from the sukuk will fund PBAPP's Water Contingency Plan 2030 (WCP 2030), support capital and operational expenses including refinancing, and finance eligible green and social initiatives under its Sustainable Finance Framework. PBAPP is the first Penang state agency to launch both a sukuk programme and a Sustainable Finance Framework. The shariah-compliant sukuk Wakalah structure allows it to raise sustainable, long-term funding from Malaysia's capital markets. PBAPP's sukuk programme received a AAA/Stable rating from RAM Ratings Services Bhd, reflecting strong credit fundamentals. Its Sustainable Finance Framework also earned a Gold rating from RAM Sustainability for strong governance, transparency, and alignment with global standards.
The Sun
08-07-2025
- Business
- The Sun
PBAPP launches RM5 bil sukuk for Penang water infrastructure
GEORGE TOWN: Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP) has unveiled its inaugural RM5 billion Islamic Medium-Term Notes (IMTN) Programme to enhance water infrastructure and long-term supply stability in Penang. The sukuk, structured under the Shariah-compliant Sukuk Wakalah model, aligns with PBAPP's newly launched Sustainable Finance Framework. Chief Minister Chow Kon Yeow, who chairs PBAPP, stated that the sukuk issuance will provide long-term capital for critical water projects while adhering to sustainable and Islamic financing principles. He highlighted that the programme received a AAA/Stable credit rating from RAM Rating Services Bhd, with the framework earning a Gold Sustainable Finance Rating from RAV Sustainability Sdn Bhd. United Overseas Bank (UOB) Malaysia and Maybank Investment Bank Bhd (Maybank IB) are the joint principal advisers and lead managers for the sukuk. Maybank IB also acts as the sole sustainability structuring adviser. Proceeds will fund PBAPP's Water Contingency Plan 2030, operational costs, refinancing, and eligible green initiatives. PBAPP is the first Penang state-linked agency to adopt both a sukuk programme and a Sustainable Finance Framework. UOB Malaysia's Andy Cheah emphasised the role of banks in mobilising sustainable financing, while Maybank IB's Michael Oh-Lau noted Malaysia's robust debt capital market, with over RM120 billion in annual private debt issuances. - Bernama
New Straits Times
08-07-2025
- Business
- New Straits Times
Penang to delay water tariff hike by six months
GEORGE TOWN: The Penang government plans to delay the implementation of a proposed water tariff revision by at least six months, a move that is expected to cost the Penang Water Supply Corporation (PBAPP) RM40 million. Chief Minister Chow Kon Yeow said the National Water Services Commission had submitted a proposal to revise water tariffs and is awaitingcabinet approval before it could be gazetted for implementation in several states, including Penang. "We are not looking to implement the new tariff early next year. Instead, we hope to defer it until the middle of next year. "This move will cost PBAPP RM40 million," he said after launching PBAPP's inaugural RM5 billion Islamic medium-term notes (IMTN) programme (sukuk wakalah) here today. PBAPP marked its collaboration with Maybank Investment Bank Bhd and United Overseas Bank (Malaysia), which have been appointed as joint principal advisers, joint lead arrangers and joint lead managers for the sukuk programme. The IMTN Programme is based on the Shariah-compliant sukuk wakalah structure, and positions PBAPP to raise medium to long-term financing through the Malaysian capital markets in a sustainable and scalable manner. The proceeds of the sukuk wakalah will be used to support: * PBAPP's Water Contingency Plan 2030, with a projected investment value of RM2.099 billion; * Broader capital expenditure, operating expenditure and refinancing needs, and * Other eligible green and social initiatives under the sustainable finance framework. Chow said while the sukuk programme size was capped at RM5 billion, PBAPP intended to issue sukuk progressively, aligned with actual project requirements. "The sukuk programme serves as a strategic war chest for PBAPP, offering a flexible and scalable funding platform to support long-term infrastructure plans. "The initial issuance in 2025 will be significantly below the programme limit, tailored to near-term investment needs." The sukuk programme has received an AAA/Stable credit rating — the highest in Malaysia — from RAM Rating Services Bhd. PBAPP's Sustainable Finance Framework, meanwhile, was awarded a Gold Sustainable Finance rating by RAM Sustainability Sdn Bhd.
The Star
08-07-2025
- Business
- The Star
Proposal to delay water tariff hike will cost Penang govt RM40mil, says CM
GEORGE TOWN: The Penang Water Supply Corporation's (PBAPP) plan to delay water tariff increases by six months will cost the state government RM40mil, says Chief Minister Chow Kon Yeow. Chow, who is also PBAPP chairman, said the decision reflected the state's commitment to easing financial burdens on the people while continuing to invest in critical water infrastructure. "We do not want to implement it early next year; we hope to delay it to the middle of next year,' he told a press conference on Tuesday (July 8) after the launch of PBAPP's new RM5bil Islamic Medium-Term Notes (IMTN) Programme. Chow said IMTN represents an alternative funding avenue, opening up opportunities for investors to fund necessary water projects and help subsidise tariffs. He said PBAPP should not be judged solely on tariff rates, adding that the corporation is actively working to enhance efficiency, reduce operational costs, and implement essential infrastructure upgrades. These include booster pump stations and expanded pipe distribution networks, he added. Acknowledging the limitations of internal funding and cost-cutting, he said, PBAPP is tapping into private financing initiatives and working with Pengurusan Aset Air Berhad (PAAB) to fund large-scale projects. He said these efforts aim to ensure that PBAPP does not have to raise capital on its own. Under a leaseback model with PAAB, selected water infrastructure projects will be financed and repaid over a 30- to 45-year period. One such project is the Mengkuang Water Treatment Plant, which is being financed through sukuk issuance to cover contractor payments. Based on the Syariah-compliant Sukuk Wakalah structure, it will allow PBAPP to raise medium to long-term financing through Malaysian capital markets.
