Perbadanan Bekalan Air Pulau Pinang Sdn. Bhd. (PBAPP) has launched its inaugural RM5.0 billion Islamic Medium-Term Notes (IMTN) Programme, marking a major milestone as the first Penang state-linked agency to establish both a Sukuk Programme and a Sustainable Finance Framework.
UOB Malaysia and Maybank Investment Bank Berhad (Maybank IB) have been appointed as the Joint Principal Advisers, Joint Lead Arrangers, and Joint Lead Managers for the Sukuk Programme. In addition, Maybank IB serves as the Sole Sustainability Structuring Adviser for PBAPP’s newly launched Sustainable Finance Framework, which is aligned with the Securities Commission Malaysia’s guidelines and other international sustainable finance standards.
The launch was officiated by Penang Chief Minister, YAB Tuan Chow Kon Yeow, and attended by key leaders including Dato’ Ir Pathmanathan K., Group CEO of Perbadanan Bekalan Air Holdings Berhad (PBAHB) and PBAPP; Ms Ng Wei Wei, CEO of UOB Malaysia; and Dato’ John Chong, Group CEO of Global Banking, Maybank.
The RM5 billion Sukuk Programme, structured under the Shariah-compliant Sukuk Wakalah model, will support PBAPP’s Water Contingency Plan 2030 (WCP 2030) and finance broader capital and operational expenditures, including green and social projects in line with PBAPP’s Sustainable Finance Framework.
Mr Andy Cheah, Country Head of Wholesale Banking, UOB Malaysia, said,“We are proud to support PBAPP in its maiden Sukuk issuance, a significant milestone in advancing sustainable infrastructure financing in Malaysia. This programme will fund critical water projects to ensure long-term water security for Penang, while highlighting the vital role of banks in mobilising capital for sustainable development.”
Mr Michael Oh-Lau, CEO of Maybank Investment Bank, added, “Maybank is honoured to support PBAPP in this historic first for Penang. This dual launch of a Sukuk Programme and Sustainable Finance Framework sets a strong precedent for other state GLCs. Malaysia’s robust debt capital markets offer PBAPP deep investor liquidity, competitive pricing, and long-term funding flexibility.”
PBAPP’s Sukuk Programme has been accorded a AAA/Stable credit rating by RAM Rating Services Berhad, underscoring the company’s strong credit fundamentals. Simultaneously, its Sustainable Finance Framework has received a Gold Sustainable Finance Rating from RAM Sustainability Sdn. Bhd., recognising PBAPP’s governance, transparency, and alignment with global sustainability standards.
Sukuk issuances will be carried out progressively, in alignment with PBAPP’s project timelines and funding needs.
Both UOB Malaysia and Maybank IB reaffirmed their commitment to supporting PBAPP and the Penang State Government in developing sustainable water infrastructure and enhancing services for the people of Penang — in line with the Penang2030 vision.