Kuala lumpur: ChemOne Group has secured a US$350 million (US$1 = RM4.23) Islamic insurance cover from the Islamic Development Bank (IsDB)’s unit, Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). In a statement today, the Singapore-based petrochemicals, green energy, and natural resources conglomerate said the cover is designed to support Islamic banks involved in the project financing of the Pengerang Energy Complex Sdn Bhd (PEC), highlighting strong institutional confidence and the project’s long-term strategic value to Johor.

According to BERNAMA News Agency, the ICIEC cover is structured under a Murabahah financing facility, providing 90 percent cover on both principal and profit, significantly de-risking the transaction for participating Islamic banks. These banks include the National Bank of Kuwait, the Qatar National Bank, Al Rajhi Bank Malaysia, and Al Rajhi Bank Saudi Arabia.

ChemOne chief financial officer Mayank Vishnoi stated that ICIEC’s support provides a strong validation of PEC’s financial strength and its far-reaching development impact. “PEC will drive regional industrial growth, create thousands of jobs, and support regional value chains while adhering to global standards for sustainable and responsible financing,” he said.

Additionally, ChemOne revealed that the IsDB Group, through the IsDB and the Islamic Corporation for the Development of the Private Sector (ICD), has committed a direct investment of US$150 million via the Istisna-Ijara structures. “With this, the IsDB Group’s total support for PEC, including both direct investment and credit enhancement, exceeds US$500 million, making it one of the group’s most significant engagements in Southeast Asia.”

The statement further noted that ICIEC’s involvement is underpinned by strong financial fundamentals, backed by Standard and Poor’s AA- and Moody’s Aa3 credit ratings, reflecting its core mandate to promote investment across member states.