PNB unit to raise RM2b green Sukuk for PNB118 Tower

Tan Sri Ranjit Ajit Singh, the Chair of Asean Capital Markets Forum (ACMF) presenting the Asean Green Bond Standards Booklet to Datin Paduka Kartini Abd. Manaf, deputy president, strategic investments of Permodalan Nasional Bhd.

KUALA LUMPUR: Permodalan Nasional Bhd's (PNB) unit plans to raise a 15-year tenure secured green sukuk –  Merdeka Asean Green SRI Sukuk programme – via an unrated Sukuk programme of up to RM2bil.

It said on Wednesday PNB Merdeka Ventures Sdn Bhd (PNBMV) would use the proceeds to fund the 83-storey office space, which forms part of the Merdeka PNB118 Tower project within the Warisan Merdeka precinct in Jalan Stadium here.

PNB said the Merdeka Asean Green SRI Sukuk programme would be an early adopter of the Asean Green bond standards launched by the Securities Commission (SC).

It will comply with the requirements of the sustainable responsible investment (SRI) Sukuk under the SC’s Guidelines on unlisted capital market products under the lodge and launch framework.

MIDF Amanah Investment Bank Bhd is the principal adviser and lead arranger for the programme.

PNBMV chief executive officer Tengku Datuk Ab. Aziz Tengku Mahmud said PNB Merdeka Ventures is an early adopter in Malaysia to issue the Merdeka Asean Green SRI Sukuk programme. 

“The Asean green sukuk validates PNB’s commitment to develop Warisan Merdeka as a sustainable and environmentally-friendly project. 

“We are also happy to support the regulatory authorities’ efforts in providing investment platforms for investors who are looking to deploy capital to be used in a sustainable and environmentally-friendly manner,” he said.

World Bank group representative to Malaysia Faris Hadad-Zervos said the issuance of the first green sukuk by a government-linked investment corporation issuer marks the entry of green sukuk into the mainstream sukuk market. 

“The fact that it is financing a green building highlights that green sukuk is not just about renewable energy, but also for a wider range of environmentally-friendly projects. The World Bank Group will continue to be a close partner to Malaysia in the development of this innovative approach to sustainable finance.” 

Tengku Ab. Aziz pointed out the Warisan Merdeka development has taken steps to ensure sustainable policies and best practices are in place for the building construction and operations, which are aligned with global standards. 

Upon completion, Merdeka PNB118 will be the first building in Malaysia that will satisfy the triple green building platinum accreditations locally and internationally, namely the green building index, the green real estate, and the leadership in energy and environmental design.