Kuala lumpur: Pengurusan Aset Air Bhd (PAAB) has successfully raised RM720 million through the issuance of blue sukuk, facilitated by Pengurusan Air SPV Bhd under its RM2 billion Islamic Commercial Papers Programme. This substantial financing move aims to support the development of water infrastructure projects.

According to BERNAMA News Agency, PAAB, a government agency under the Ministry of Energy Transition and Water Transformation and wholly owned by the Minister of Finance (Incorporated), has positioned itself as a key player in sustainable Islamic finance. PAAB's chief executive officer, Zulkiflee Omar, emphasized that the issuance underscores investor confidence in the company's creditworthiness and its commitment to long-term, sustainable financing strategies.

The blue sukuk, priced to mature on July 29, 2026, marks a significant milestone for PAAB, as it represents the largest blue sukuk issuance globally within the sustainable Islamic finance debt capital market for water infrastructure. This initiative is part of PAAB's Sustainable Islamic Finance Framework (SIFF).

The transaction garnered robust interest from institutional investors, with total orders reaching RM770 million, reflecting an oversubscription rate of 1.54 times compared to the original issuance size of RM500 million. The funds obtained will be directed towards a portfolio of projects identified under the SIFF, such as the Jernih Water Treatment Plant in Melaka, the Tok Bali Water Treatment Plant in Kelantan, and the Sultan Iskandar Water Supply Scheme in Johor.

PAAB stated that all projects financed under the SIFF undergo a comprehensive governance process to ensure adherence to recognized sustainable finance principles and the delivery of tangible environmental benefits.