Malakoff files RM700mil green sukuk for Melaka WTE plant
KUALA LUMPUR: Malakoff Corp Bhd has lodged a RM700 million green sukuk programme to part-finance the development of a waste-to-energy (WTE) facility in Sungai Udang, Melaka scheduled for completion in 2029.
Malakoff Corp Bhd has submitted a RM700 million green sukuk programme to partially fund the construction of a waste-to-energy (WTE) facility in Sungai Udang, Melaka, with completion projected for 2029. The subsidiary, Sungai Udang WTE Sdn Bhd, filed the 30-year Asean Green Sustainable and Responsible Investment sukuk Wakalah with the Securities Commission.
MARC Ratings Bhd provided a preliminary long-term rating of AA-IS for the sukuk, with funds allocated for the facility's development, design, and construction. The project operates under a 34-year concession that began on June 18. Malakoff controls 60% of the venture, while Alam Flora Environmental Solutions Sdn Bhd, a wholly-owned subsidiary of Alam Flora Sdn Bhd, holds the remaining 40%.
Upon completion, the plant will be Melaka's first of its kind, handling up to 1,056 tonnes of municipal solid waste daily and producing 22.1 megawatts of gross renewable energy. This will divert over 300,000 tonnes of waste from landfills and avert 75,000 tonnes of carbon dioxide emissions annually, alleviating pressure on the state's overcrowded landfill system as it nears capacity.
Malakoff's CEO, Syahrunizam Samsudin, emphasized that the project will bolster the group's environmental solutions business and align with its power generation operations. Converting waste to energy will reduce landfill waste, methane emissions, and support Malaysia's shift towards sustainable waste management. The government has set a goal of establishing 18 WTE plants across the nation.
Syahrunizam noted that the Sungai Udang project will aid Malakoff's ambition to expand its waste management capacity to 10,000 tonnes daily by 2031. The company's prior green sukuk issuances by Malakoff Power Bhd in May 2025 and April 2026 were both oversubscribed, receiving 10.34 times and 4.5 times the requested funds, respectively, signaling strong investor faith in the company's sustainability initiatives.
RHB Investment Bank Bhd serves as the principal adviser, lead arranger, and lead manager for the green sukuk programme.
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