PAAB Proposes RM11.64 Bln Sukuk Programme For Long-term Water Infrastructure Development
KUALA LUMPUR, Oct 23 (Bernama) -- Pengurusan Aset Air Bhd (PAAB) has proposed an RM11.64 billion Islamic Medium-Term Notes (IMTN) programme through its wholly owned funding vehicle and sukuk issuing entity, Pengurusan Air SPV Bhd (PASB), to support its long-term strategic capital expenditure (capex) requirements over the next decade.
The proposed sukuk programme will support the continued development and enhancement of Malaysia’s water infrastructure.
Funding is expected to support approximately RM1.6 billion of capex for projects currently under construction, RM13.4 billion for projects at the design and tendering stage, as well as new projects to be identified and developed.
PAAB chief executive officer (CEO) Ir Zulkiflee Omar said the proposed programme would support the organisation’s long-term financing requirements.
“The proposed sukuk programme would also advance our sustainability agenda in line with Malaysia’s Water Sector Transformation 2040 agenda and PAAB’s Sustainable Islamic Finance Framework (SIFF),” he said in a joint statement with Maybank Investment Bank Bhd (Maybank IB) and RHB Investment Bank Bhd (RHB IB), today.
Separately, PAAB chief financial officer Zaleha Abdul Hamid said the company has various water infrastructure projects at the design and development stages requiring substantial capital investment in the coming years.
“The programme will allow us to consider different sukuk structures depending on our project requirements and market conditions, which aims to widen our investor base and manage our funding costs prudently,” she said in her opening remarks at the signing ceremony for the appointment of joint principal advisers and joint lead arrangers for the proposed sukuk programme here today.
Earlier this year, PAAB launched its SIFF to incorporate sustainability considerations into its financing activities.
“Our inaugural Blue Islamic Commercial Papers Issuance of RM720 million in August 2026 was a step forward in this direction.
“It demonstrated how we can access the Islamic capital market to raise funding for sustainability-related eligible projects within the water sector.
“Going forward, we will explore opportunities to apply SIFF to future financing activities where appropriate, taking into account our strategic objectives and investors’ interests,” she said.
PAAB has appointed Maybank IB and RHB IB as the joint principal advisers and joint lead arrangers for the proposed sukuk programme.
Maybank IB CEO Michael Oh-Lau said that as sole sustainability structuring adviser for PAAB’s SIFF, the investment bank also supports PAAB in expanding its access to sustainable and blue financing, helping to translate its sustainability ambitions into tangible infrastructure outcomes.
RHB IB managing director and CEO Kevin Davies said the appointment reflects RHB IB’s continued commitment to ensuring funding readiness for future investment requirements.
“We look forward to working closely with PAAB to establish this programme, drawing on our structuring and execution capabilities to support its long-term financing objectives,” he said.
PAAB, through PASB, currently maintains three financing programmes, namely its Islamic Commercial Papers (ICP) Programme of up to RM2.0 billion in nominal value, AAA-rated IMTN Programme of up to RM20.0 billion in nominal value, and Government-Guaranteed IMTN Programme of up to RM20.0 billion in nominal value, which are set to expire in August 2029, November 2039, and February 2041, respectively.
On Aug 3, 2026, PASB successfully issued RM720.0 million Blue Sukuk under its existing RM2.0 billion ICP Programme, which was recognised as the world's first and largest Blue Sukuk issuance to-date.
The occasion also commemorated PAAB’s inaugural placement of RM300 million on Aug 26, 2026 under Maybank Islamic Bhd’s Islamic Sustainable Fixed Deposit-i programme, backed by the Maybank Group’s Sustainable Product Framework.
-- BERNAMA