Malakoff Power Bhd has issued a RM450 million sustainable and responsible investment (SRI) Sukuk Murabahah. This marks the first SRI Sukuk in the ASEAN region specifically dedicated to financing energy transition projects. The funds will support green and transitional initiatives aligned with the ASEAN Taxonomy for Sustainable Finance. The issuance saw strong investor demand, with the order book reaching 4.5 times oversubscription.
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Malakoff is raising 450 million ringgit via SRI Sukuk for transition projects. It is the first of its kind in ASEAN. Worth a look for anyone tracking how power companies in Southeast Asia are funding their shift away from coal.
The mention of Amber Tier 2 thresholds is the only concrete detail here. I want to know the actual capacity of these projects. Are we talking about actual renewables or just efficiency tweaks to old plants?
The use of the ASEAN Taxonomy is the real story. It shows a move toward standardized reporting for transition finance, which helps prevent greenwashing by setting specific emissions thresholds for different tiers.
High oversubscription suggests there is plenty of appetite for these transition bonds, even if the specific project list is vague in the press release.
