Danajamin guarantees Pasukhas green sukuk

Danajamin managing director Mohamed Nazri Omar said:

PETALING JAYA: Danajamin Nasional Bhd is guaranteeing tranche one of the 20-year RM200mil Islamic medium term notes programme (Asean Green SRI Sukuk) issued by Pasukhas Group Bhd’s unit.

Danajamin, the country’s first financial guarantee insurer, said that tranche one for an amount of RM17mil with tenures of up to 10 years, is unrated and will be fully subscribed upon issuance.

Pasukhas Green Assets Sdn Bhd, which issued the sukuk, will use the proceeds for its hydropower plant in Sungai Rek, Kelantan and explore other renewable energy assets in Malaysia. “The issuance marks Danajamin’s first foray into green sukuk, in support of environmentally sustainable infrastructure projects in Malaysia,” it said.

Green sukuk, like other SRI instruments, is a funding channel that plays an important role in the preservation of the environment and climate change.

There is also strong compatibility between sukuk and funding of green projects as both are based on principles of responsible investment and ethical financing.

Danajamin CEO Mohamed Nazri Omar said Pasukhas, which was founded in 1985 as a mechanical and electrical contractor, has evolved over the years into a one-stop solution for mechanical and electrical engineering needs. “They continue to seize growth opportunities by extending their business activities into multiple sectors such as water treatment, food industry, oil and gas as well as chemical industries.”