UOB Malaysia and Maybank Investment Bank (Maybank IB) have been appointed as joint lead arrangers and managers for Perbadanan Bekalan Air Pulau Pinang’s (PBAPP) RM5 billion sukuk programme. The funds will support long-term water infrastructure and sustainable development efforts in Penang under PBAPP’s Water Contingency Plan 2030. Maybank IB also acted as the sole sustainability structuring adviser, ensuring alignment with both local and international sustainable finance standards.
PBAPP, a subsidiary of PBA Holdings Bhd with majority ownership by the Penang government, becomes the first state-linked agency in Penang to launch both a sukuk programme and a sustainable finance framework. The sukuk, structured under a Shariah-compliant wakalah model, has received a AAA/Stable rating from RAM Ratings and a gold sustainability rating. The funding will cover capital and operational expenses, refinancing, and green and social initiatives aimed at ensuring water security amid rising demand and climate challenges.