NPE issues RM54mil sustainability-linked sukuk for NPE2, world's first for a highway project
KUALA LUMPUR: IJM Corporation Bhd’s wholly-owned subsidiary, New Pantai Expressway Sdn Bhd (NPE), has issued an initial RM54 million Sustainability-Linked Sukuk (SLS) to finance the New Pantai Highway Extension (NPE2), marking the world’s first SLS for a highway project.
The SLS was issued under NPE’s unrated Islamic Medium Term Notes Programme of up to RM1.42 billion in nominal value, and adopts a performance-based financing structure anchored by two key performance indicators, namely occupational health and safety and green infrastructure certification.
In a joint statement today, Maybank Investment Bank Bhd (Maybank IB), CIMB Investment Bank Bhd (CIMB IB) and NPE said the proceeds will be used to fund the construction of NPE2, a 6.4-kilometre elevated highway, including directional ramps.
The highway forms part of the Kuala Lumpur Traffic Master Plan 2040 and will connect the existing Pantai Dalam Toll Plaza to the Jalan Istana Interchange via Jalan Syed Putra.
Once completed, NPE2 will strengthen highway-to-highway connectivity between the NPE, Sungai Besi Expressway and the upcoming Laluan Istana-Kiara Expressway, improving traffic dispersion and accessibility into central Kuala Lumpur while supporting more efficient movement along the Pantai Dalam-Bangsar-Mahameru corridor and longer-term urban mobility needs,” said the statement.
They said the construction of the project is being undertaken by IJM Construction Sdn Bhd, which was awarded the design-and-build contract in November 2025, with completion targeted for end-2029.
IJM group chief executive officer (CEO) and managing director Datuk Lee Chun Fai said the NPE2 SLS was structured around two areas central to how the group delivers every project, namely worker safety and sustainability performance.
Being the first highway globally to issue an SLS on these terms reflects our commitment to embedding measurable accountability into project delivery.
Through this financing structure, we are equally focused on how the project is delivered, with clear performance targets tied to the transaction,” he said.
Maybank IB and CIMB IB acted as Joint Principal Advisers, Joint Lead Arrangers, Joint Lead Managers and Joint Sustainability Structuring Advisers for the transaction.
Maybank IB CEO Michael Oh-Lau said the landmark SLS demonstrates continued innovation in sukuk structuring and reflects the bank’s commitment to advancing sustainable finance while supporting the growing demand for innovative financing solutions.
Meanwhile, CIMB IB CEO Nor Masliza Sulaiman said the initiative enhances connectivity, strengthens economic vitality, reduces environmental impacts and promotes safer working and mobility practices, while meeting growing investor demand for financing solutions that align Shariah principles with sustainability objectives and long-term value creation. - Bernama