Johor Plantations Group’s inaugural RM1.3 billion ($303 million) sustainability-linked sukuk wakalah achieved important milestones.
As the world’s first sustainability-linked sukuk from the plantation sector – and the first to gain an SRI-linked rating under Malaysia’s SRI sukuk framework – the transaction embedded the company’s core environmental goals directly into its funding terms.
A tiered profit‐payment step-up activates if any of three material KPIs are missed – greenhouse-gas emission cuts, full traceability to fresh-fruit-bunch suppliers, and improved water-management metrics – aligning bondholder returns with Johor Plantations’ net-zero trajectory.
Market reception was strong, with 37 institutional accounts subscribed, ranging from asset managers and insurers to banks and government agencies, illustrating broad confidence in the issuer’s sustainability roadmap.
CIMB and Maybank jointly arranged and led the issuance, with Maybank also acting as sole sustainability structuring adviser.
