News Release - 08 Jul 2025

UOB Malaysia and Maybank support PBAPP’s RM5.0 billion Sukuk Programme to advance water infrastructure development

Penang, 8 July 2025 – UOB Malaysia and Maybank Investment Bank (Maybank IB) have been appointed as Joint Principal Advisers, Joint Lead Arrangers, and Joint Lead Managers for Perbadanan Bekalan Air Pulau Pinang Sdn. Bhd. (PBAPP)’s inaugural RM5.0 billion Islamic Medium-Term Notes (IMTN) Programme (Sukuk Programme).

Maybank IB also acted as the Sole Sustainability Structuring Adviser for PBAPP’s newly launched Sustainable Finance Framework, which is developed in alignment with the relevant principles set by Securities Commission Malaysia as well as other applicable regional and international sustainable finance standards.

The launch of PBAPP’s Sukuk Programme and Sustainable Finance Framework was officiated today by Penang Chief Minister, YAB Tuan Chow Kon Yeow. The event was attended by Dato’ Ir Pathmanathan K., Group Chief Executive Officer of Perbadanan Bekalan Air Holdings Berhad (PBAHB) and PBAPP; Ms Ng Wei Wei, Chief Executive Officer of UOB Malaysia, and Dato’ John Chong, Group Chief Executive Officer of Global Banking, Maybank.

Mr Andy Cheah, Country Head of Wholesale Banking, UOB Malaysia said, “We are proud to support PBAPP in its maiden Sukuk issuance, a significant milestone in advancing sustainable infrastructure financing in Malaysia. This RM5 billion Sukuk Programme will fund critical water projects to ensure long-term water security for Penang, addressing rising demand and challenges such as limited water resources and climate change. The Sukuk Programme also highlights the important role banks play in mobilising capital for sustainable financing and demonstrates how we leveraged our capabilities to deliver real change in public sector infrastructure.”

Mr Michael Oh-Lau, Chief Executive Officer of Maybank Investment Bank Berhad, said, “Maybank is honoured to support PBAPP for the simultaneous establishment of its Sukuk Programme and Sustainable Finance Framework — a historic first for Penang, and one that sets a strong precedent for other state Government-Linked Company. Malaysia’s debt capital markets remain one of the most developed and liquid in the region, with over RM120 billion in private debt securities issued annually coupled with a steady growth of sustainability-labelled issuances year on year. Through this Sukuk Programme, PBAPP is now well-positioned to benefit from deep and diverse investor liquidity, competitive pricing and greater funding flexibility over time.”

Proceeds from the Sukuk Programme will be used to fund PBAPP’s Water Contingency Plan 2030 (WCP 2030), support broader capital and operational expenditures including refinancing needs, and finance other eligible green and social initiatives in line with its Sustainable Finance Framework.

PBAPP is the first Penang state-linked agency to establish both a Sukuk Programme and a Sustainable Finance Framework. The IMTN Programme is structured under the Shariah-compliant Sukuk Wakalah model, enabling PBAPP to raise medium to long-term financing through Malaysia’s capital markets in a sustainable and scalable manner.

PBAPP’s Sukuk Programme has received a AAA/Stable credit rating from RAM Rating Services Berhad, reflecting its strong credit fundamentals. Concurrently, its Sustainable Finance Framework was awarded a Gold Sustainable Finance Rating by RAM Sustainability Sdn. Bhd., recognising its robust governance, transparency and alignment with global sustainable finance standards. PBAPP plans to issue the Sukuk progressively, aligned with actual project requirements and tailored to near-term investment needs.

UOB Malaysia and Maybank Investment Bank remain committed to supporting PBAPP and the Penang State Government in accelerating water infrastructure development and enhancing water supply services for the people of Penang, in line with the Penang2030 vision.