Kuala lumpur: PBA Holdings Bhd’s unit, Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP), has successfully issued its inaugural sustainability sukuk wakalah, aggregating RM300 million in nominal value under its sukuk wakalah programme.

According to BERNAMA News Agency, the issuance consists of two tranches, Tranche 1 and Tranche 2, each valued at RM150 million. Tranche 1 offers a periodic distribution rate of 3.57 percent per annum, payable semi-annually, with a tenure extending up to 10 years until September 4, 2035. Tranche 2, on the other hand, provides a periodic distribution rate of 3.75 percent per annum, with a tenure of 15 years until September 4, 2040.

The proceeds from this sustainability sukuk wakalah issuance are earmarked for financing projects under the Water Contingency Plan 2030 as well as other capital and operating expenditures. These initiatives fall under eligible green projects for sustainable water and wastewater management and eligible social projects for affordable basic infrastructure, as outlined in PBAPP’s framework.

The sukuk wakalah programme has received a credit rating of AAA from RAM Rating Services Bhd.