Latest news with #RM120bil
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 Star
03-06-2025
- Business
- The Star
SMEs urged to grab chance to grow
Mohd Jafni (second from left) speaking with Tey (centre, in white) and hawkers and petty traders who received tents from the state government during a ceremony at Johor Baru City Council. MICRO businesses as well as small and medium enterprises (SME) are urged to seize opportunities that come with the development of Johor-Singapore Special Economic Zone (JS-SEZ). State housing and local government committee chairman Datuk Mohd Jafni Md Shukor said JS-SEZ had the potential to contribute an additional US$28bil (about RM120bil) to Malaysia's gross domestic product (GDP) by 2030. He said the initiative spanning 11 key economic sectors was expected to see the start of about 50 projects in the first five years, with the number of projects going up to 100 in 10 years. 'This shows that JS-SEZ has many opportunities for SME and micro businesses to grab,' he said. The 11 key economic sectors under the JS-SEZ are manufacturing, logistics, food security, business services, tourism, energy, digital economy, green economy, financial services, education and health. During an interview, Mohd Jafni added that the state government, through its 16 local councils, had also been clamping down on the abuse of business licences to ensure that locals benefit from the economic activities. 'We have been running joint operations regularly to go after those abusing business licences, such as illegally renting them to foreigners,' he said. 'We want to ensure that the right people benefit from the state's development and this is the Johor government's priority.' Mohd Jafni highlighted that SMEs contributed 37% of the country's GDP and generated about 48% of the nation's workforce including in sectors such as services, manufacturing, agriculture and commerce. 'The state government recently distributed 6,000 units of tents worth RM3mil to petty traders and SME for the year.' He said the state government had also been collaborating with Bank Rakyat to assist businesses through the BR Johor Niaga financial scheme. As of March 31, 644 entrepreneurs had been accepted for the scheme, which had disbursed more than RM43.2mil since it was launched on March 22, 2023. The scheme allows eligible applicants to receive interest-free funding of between RM5,000 and RM50,000. The interest is fully borne by the state government. Johor Baru Small Business Association president Tey Tian Hwang urged eligible entrepreneurs to apply for the zero-interest scheme to upgrade and improve their businesses. 'SMEs, including hawkers and mobile traderswho are looking forward to the JS-SEZ implementation, should make plans to upgrade their businesses and uplift their services and image. 'With more developments, there will naturally be a higher demand for goods and services, which SMEs will stand to benefit from,' he said. Tey added that next year's Visit Johor Year promotion and completion of the Rapid Transit System Link, connecting Johor and Singapore by rail, would further boost the economy.
