Most innovative Islamic deal – Asia: MYEG Services’ RM250 million three-year sustainability sukuk wakalah
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Most innovative Islamic deal – Asia: MYEG Services’ RM250 million three-year sustainability sukuk wakalah



Issuer: MYEG Services Berhad

Size: RM250 million

Structure: Wakalah bi istithmar

Tenor: Three years

Banks: CIMB Islamic Bank and HSBC Amanah (lead arrangers and sustainability structuring advisers)

Date: August 2023

 

While there were plenty of innovative Islamic financings in Asia last year, there was only one that touched on two of the most important themes and potentially transformative developments in recent years: sustainability and blockchain technology.

Malaysian digital services company MYEG’s RM250 million ($52 million) three-year, 5.4% sukuk in August was not only a sustainable sukuk – supporting the building of accommodation for foreign workers – it was also the first time in the country’s sukuk market that blockchain has been given as use of proceeds.

As such, MYEG, a Malaysian government concessionaire, intends to use the funds raised to help fund the development of the country’s national blockchain infrastructure, as well as to build housing for workers.

Malaysia’s government has been investing substantially in its digital infrastructure over the past few years, including in broadband and 5G connectivity, data centres, cloud computing, artificial intelligence and blockchain.



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