Cenergi SEA Bhd has successfully issued its inaugural RM210 million Senior Islamic Medium-Term Notes, which would enable it to effectively manage and optimise its cash flow, grow its business and support the government’s aspiration in the enhancement of the renewable energy (RE) sector.

The sukuk is based on the syariah principle of wakalah bi al-istithmar in compliance with the Securities Commission Malaysia’s (SC) Sustainable and Responsible Investment (SRI) Sukuk Framework, the ASEAN Green Bond Standards issued by the ASEAN Capital Markets Forum, and the Green Bond Principles issued by the International Capital Market Association.

The ASEAN SRI Green Senior Sukuk Wakalah issuance comprises a five-year RM85 million sukuk due in 2026 with a profit rate of 5.3% per annum and a seven-year RM125 million sukuk due in 2028 with a profit rate of 5.55% per annum respectively, Cenergi said in a statement on Thursday (Dec 23).

The ASEAN SRI Green Senior Sukuk Wakalah is issued pursuant to Cenergi’s Islamic Notes Issuance Programme of up to an aggregate amount of RM1.5 billion in nominal value based on the syariah principle of wakalah bi al-istithmar.

It said the latter sukuk programme allows Cenergi to issue senior sukuk wakalah and perpetual sukuk wakalah, including green sukuk wakalah in compliance with the SC’s SRI Sukuk Framework, the ASEAN Green Bond Standards, the Green Bond Principles and/or such other guidelines or frameworks or standards in relation to green bonds issued from time to time.

The sukuk programme has been assigned a final rating of A1/Stable for the senior sukuk wakalah and A3/Stable for the perpetual sukuk wakalah by RAM Rating Services Bhd. RAM Sustainability Sdn Bhd has provided a second opinion on Cenergi’s Green Sukuk Framework.

Cenergi, being the sustainable energy subsidiary of Khazanah Nasional Bhd, is actively expanding its RE business, and plans to utilise the proceeds from the sukuk issuance to refinance its existing loans as well as to fund its upcoming RE projects.