KUALA LUMPUR: PNB Merdeka Ventures Sdn Bhd has issued the Sustainability Merdeka Sukuk Wakalah under its Merdeka Sukuk Wakalah Programme of up to RM6 billion.
The transaction marks the largest sustainability sukuk in Asean, the biggest from the commercial real estate sector and the largest ringgit-denominated issuance to date.
The sukuk was marketed through an accelerated book-building exercise on Oct 16, comprising tenures of five, seven, 10 and 15 years, with a base issue size of RM5.5 billion. A 20-year RM500 million tranche was separately offered via private placement.
The programme, rated AAAIS with a stable outlook by MARC Ratings Bhd, forms part of PNB Merdeka Ventures’ long-term funding diversification and capital management strategy to optimise the financing structure for the Merdeka 118 project.
Chief executive officer Datuk Tengku Ab Aziz Tengku Mahmud said the overwhelming investor response reflects strong confidence in the project’s commercial potential.
“The success of this issuance reaffirms the market’s confidence in our stewardship and the long-term prospects of the Merdeka 118 precinct as a national pride and catalyst for Kuala Lumpur’s continued growth.
“It also underscores our commitment to shaping developments with enduring purpose, projects that elevate communities, strengthen national identity, and leave a lasting legacy for future generations,” he added.
At its peak, the order book achieved a bid-to-cover ratio of 1.17 times.
PNB said the transaction drew strong interest from more than 40 investors, including government-linked companies, financial institutions, asset managers and insurance firms.
The offering was priced at 3.64 per cent, 3.79 per cent, 3.83 per cent, 4.04 per cent and 4.11 per cent for the five, seven, 10, 15 and 20-year tenures respectively, translating to a weighted average profit rate of 3.83 per cent.
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