Malaysia’s PNB plans RM6 billion sukuk for skyscraper project

[KUALA LUMPUR] PNB Merdeka Ventures is setting up a programme to sell as much as RM6 billion (S$1.8 billion) of Islamic bonds to partly fund the ongoing development of the Merdeka 118 precinct.

The funds will provide additional capital for continued progress of the project, which houses the world’s second-tallest building, the Merdeka 118.

The company, a subsidiary of government-linked investment firm Permodalan Nasional, will also use the money raised to refinance its existing sukuk, it said.

CIMB Investment Bank and Maybank Investment Bank are jointly arranging the sukuk programme.

The Merdeka 118 tower features office space, which has an occupancy rate of about 70 per cent, and the recently opened Park Hyatt Kuala Lumpur.

Meanwhile, about 70 per cent of space at its seven-storey mall has been committed ahead of its opening, it added. BLOOMBERG