PAAB Raises RM720 Mln Blue Sukuk For Water Infrastructure
KUALA LUMPUR, July 31 (Bernama) -- Pengurusan Aset Air Bhd (PAAB) has completed the issuance of RM720 million of blue sukuk through Pengurusan Air SPV Bhd under its existing RM2 billion Islamic Commercial Papers Programme.
PAAB is a wholly owned company of the Minister of Finance (Incorporated) and a government agency under the Ministry of Energy Transition and Water Transformation.
PAAB chief executive officer Zulkiflee Omar said the issuance reflected strong investors’ confidence in the company’s credit strength, prudent financial management and long-term sustainable financing strategy.
“PAAB will continue to mobilise sustainable capital that reinforces Malaysia's position as a global leader in sustainable Islamic finance, while advancing water security for the future, and play a pivotal role in supporting the nation's sustainable development agenda,” he said in a statement today.
The blue sukuk was priced on July 29, 2026. Its issuance positions PAAB at the forefront of the sustainable Islamic finance debt capital market for water infrastructure, as the global largest blue sukuk issuance, under the umbrella of PAAB’s Sustainable Islamic Finance Framework (SIFF).
PAAB said the transaction attracted strong demand from institutional investors, with total orders of RM770 million, representing an oversubscription of 1.54 times against the initial issuance size of RM500 million.
The proceeds that PAAB will receive on Aug 3, 2026, will be utilised to finance a portfolio of eligible projects identified under SIFF, including Jernih Water Treatment Plant in Melaka, Tok Bali Water Treatment Plant in Kelantan, and Sultan Iskandar Water Supply Scheme in Johor.
PAAB said all projects financed under SIFF were assessed through a robust governance process to ensure alignment with internationally recognised sustainable finance principles and deliver measurable environmental benefits.
-- BERNAMA