KUALA LUMPUR: China-owned water treatment company BEWG (M) Sdn Bhd made its debut on the Malaysian sukuk market following the success of its issuance of a RM400 million Islamic Term Note.
The Sukuk Wakalah is the first-ever ringgit-denominated sukuk issued by a Chinese conglomerate for water infrastructure project.
Proceeds from the issuance will be used to partly finance the refurbishment and upgrading of a water treatment plant in Kemaman, Terengganu, which BEWG secured from the state's government in November 2015.
The project value is RM687 million.
BEWG chief executive officer Datuk Vence Ong Kian Min said the sukuk is the company's first-ever debt capital market instrument, besides being the first and the largest ringgit-denominated sukuk issuance by a China-owned company to date.
"This water treatment project is not only important for the state of Terengganu and its people, but it also represents strong relations between China and Malaysia.
"The refurbished and upgraded water treatment plant will ensure reliable water supply to the Kemaman district, which houses (several of) Peninsular Malaysia's oil and gas production and refinery operations.
"This project is poised to meet growing demand from industrial areas in Teluk Kaling and Kerteh, which will help promote the state's long-term economic growth," he said during his corporate presentation at the signing ceremony here today.
Ong said the issuance is an important milestone for BEWG in enhancing its profile and increasing its recognition among local investors, paving the way for future fundraising exercises in Malaysia.
The sukuk carries a rating of AAIS, with a stable outlook, by Malaysian Rating Corp Bhd.
BEWG is a wholly-owned indirect subsidiary of Beijing Enterprises Water Group Ltd, and was incorporated to undertake water treatment projects in Malaysia.