BPMB PROVIDES FINANCIAL GUARANTEE FOR ECONAS RESOURCE TO ENERGY SDN BHD’S SUKUK PROGRAMME
Bank Pembangunan Malaysia Berhad ("BPMB") has recently announced its commitment to provide a financial guarantee of up to RM76.8 million for a RM96.0 million Sukuk issuance by Econas Resource to Energy Sdn Bhd ("ER2E"). The Sukuk is part of ER2E's RM500.0 million ASEAN Sustainability SRI Sukuk Murabahah Programme, which will finance the development of the first Resource Recovery & Disposal Complex ("RRDC") and Resource to Energy-Scheduled Waste ("R2E-SW") Integrated waste treatment facilities in Pengerang, Johor. This project will increase the capacity of scheduled waste management facilities in Malaysia.
BPMB Group Chief Executive Officer, Roni Abdulwahab, expressed his delight in providing a financial guarantee for ER2E's Sukuk Programme, as the project aligns with BPMB's purpose of delivering impact capital for national development.
To evaluate the impact of the project to the country, BPMB used its Measuring Impact on National Development (MIND) framework. MIND objectively measures a project's developmental, socio-economic, and environmental elements and complements BPMB's credit evaluation process.
ER2E Group Executive Chairman, Dato' Mohd Shafiee Mohd Sanip, stated that the RRDC R2E-SW facility is strategically located in Pengerang to serve companies nationally and within the industrial area. It will be the first integrated waste treatment facility in Johor that addresses the need for specialised treatment capacity for industrial waste. The project will help manage the waste generated at the nearby Pengerang Integrated Petroleum Complex (PIPC) and prevent incidents of improper disposal that lead to river contamination and pollution.
The RRDC, R2E-SW project will be implemented in two phases. The first phase will include a secure landfill, pyrolysis and microwave plants, solidification plant, leachate treatment plant, and all ancillary supporting infrastructure. This phase is scheduled to commence operations by the fourth quarter of 2023. The second phase will involve the construction of a Resource to Energy-Scheduled Waste Facility (R2E-SW), which can treat a wider range of industrial waste and generate renewable energy using such wastes.
ER2E is also involved in the collection, treatment, recycling, recovery, and final disposal of scheduled waste. BPMB's financial guarantee for ER2E's Sukuk Programme demonstrates its commitment to supporting sustainable development and promoting environmentally friendly waste management practices.
From Left: Khalid Bahsoon, Managing Director and Founder, Econas, Roni Abdulwahab, Group Chief Executive Officer, Bank Pembangunan Malaysia Berhad, Dato’ Mohd Shafiee bin Mohd Sanip, Group Executive Chairman, Perisind Samudra Sdn Bhd, Tracy Chen, Chief Executive Officer, AmInvestment Bank, Jamzidi Khalid, Managing Director, Wholesale Banking, Ambank Berhad, Kasrul Nazrin bin Kassim, Executive Director, Perisind Samudra Sdn Bhd.