Pulau Indah Power Plant’s MYR2.76 billion sukuk marked a notable return of large-scale Islamic project financing to Malaysia’s power sector. The financing was structured for a 2x600MW combined cycle gas turbine plant, backed by sponsors Worldwide Holdings with a 75% stake and Korea Electric Power Corporation with 25%.
Its long-term revenue profile was supported by Tenaga Nasional Berhad as offtaker under a 21-year power purchase agreement from commercial operation date.
The transaction was notable for its size and its market timing. Issued under an Islamic medium-term notes programme of up to MYR3 billion, the sukuk used a wakalah bi al-istithmar structure.
After two months of marketing, the issuer achieved what was described as the lowest profit rate ever for a gas turbine project financing sukuk
The MYR2.76 billion issue, with tenors ranging from three to 17.5 years, was the first conventional independent power producer project financing MYR sukuk since 2018 and the largest project financing sukuk offering since 2021.
Execution was built around a deliberate marketing period. The deal was announced in September 2025, followed by an investor town hall and site visits by investors.
After two months of marketing, the issuer achieved what was described as the lowest profit rate ever for a gas turbine project financing sukuk.
HSBC Amanah acted as joint lead manager on the transaction.
