PNB Merdeka Ventures Makes ASEAN's Largest Corporate Sustainability Sukuk Issuance

KUALA LUMPUR, Nov 6 (Bernama) -- PNB Merdeka Ventures Sdn Bhd has completed the inaugural issuance of the Sustainability Merdeka Sukuk Wakalah under its Merdeka Sukuk Wakalah Programme of up to RM6 billion in nominal value as part of its funding diversification strategy. 

In a statement, the wholly-owned subsidiary of Permodalan Nasional Bhd (PNB) said that to date, the transaction represents the largest corporate sustainability sukuk issuance in ASEAN and the largest sustainability sukuk issuance from the commercial real estate sector in ASEAN. 

It also represents 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 used to refinance PNB Merdeka Ventures’ existing sukuk and raise fresh capital for the ongoing development of the Merdeka 118 precinct.

PNB Merdeka Ventures chief executive officer Datuk Tengku Ab Aziz Tengku Mahmud said the success of the issuance reaffirms the market’s confidence in its 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 said. 

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According to the statement, the transaction was marketed via an accelerated bookbuilding exercise on Oct 16, 2025, comprising tenures of five, seven, 10 and 15 years with a base issue size of RM5.5 billion. 

It said 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, which allowed PNB Merdeka Ventures to upsize the offering to RM6 billion.

“The transaction attracted robust interest from more than forty diverse pools of investors, including government-linked companies, financial institutions, asset managers and insurance companies,” it said. 

The offering was finally 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, which is significantly 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 are the joint principal advisers, joint lead arrangers and joint sustainability structuring advisers for the Merdeka Sukuk Wakalah Programme and the joint lead managers and joint bookrunners for PNB Merdeka Ventures’ debut Sustainability Merdeka Sukuk Wakalah issuance. 

-- BERNAMA