Kuala lumpur: PNB Merdeka Ventures Sdn Bhd has completed the inaugural issuance of the Sustainability Merdeka Sukuk Wakalah under its Merdeka Sukuk Wakalah Programme, set at up to RM6 billion in nominal value. This move forms part of its strategy to diversify funding sources.
According to BERNAMA News Agency, this transaction marks the largest corporate sustainability sukuk issuance in ASEAN and the largest sustainability sukuk issuance within the commercial real estate sector in ASEAN. It also stands as the largest ringgit-denominated sukuk issuance and the largest single ringgit-denominated corporate AAA-rated sustainability sukuk issuance.
Proceeds from the Merdeka Sukuk Wakalah Programme will be allocated to refinance PNB Merdeka Ventures’ existing sukuk and generate fresh capital for the ongoing development of the Merdeka 118 precinct. PNB Merdeka Ventures CEO, Datuk Tengku Ab Aziz Tengku Mahmud, emphasized that the success of the issuance reaffirms market confidence in their leadership and the long-term potential of the Merdeka 118 precinct as a symbol of national pride and a catalyst for Kuala Lumpur’s growth.
The transaction was marketed through an accelerated bookbuilding exercise on October 16, 2025, with tenures spanning five, seven, 10, and 15 years, and a base issue size of RM5.5 billion. Additionally, a 20-year, RM500 million tranche was separately offered on a private placement basis.
At its peak, the order book achieved a bid-to-cover ratio of 1.17 times, permitting PNB Merdeka Ventures to increase the offering to RM6 billion. The transaction garnered significant interest from over forty investor groups, including government-linked companies, financial institutions, asset managers, and insurance companies.
The offering was priced at 3.64 percent, 3.79 percent, 3.83 percent, 4.04 percent, and 4.11 percent for the five, seven, 10, 15, and 20-year tenures respectively, resulting in a weighted average profit rate of 3.83 percent. This rate is notably lower than the financing cost of the existing unrated sukuk issued by PNB Merdeka Ventures in 2017.
CIMB Investment Bank Bhd and Maybank Investment Bank Bhd served as joint principal advisers, joint lead arrangers, and joint sustainability structuring advisers for the Merdeka Sukuk Wakalah Programme, as well as joint lead managers and joint bookrunners for PNB Merdeka Ventures’ debut Sustainability Merdeka Sukuk Wakalah issuance.