Business Today - BPMB Guarantees Up To RM76.8 Million Of Sukuk By Econas>
Kuala Lumpur, 17 April 2023
Bank Pembangunan Malaysia Bhd (BPMB) announced it will provide a financial guarantee of up to RM76.8 million of a RM96 million Sukuk issuance by Econas Resource to Energy Sdn Bhd (ER2E).
The Sukuk is a part of ER2E’s RM500 million ASEAN Sustainability SRI Sukuk Murabahah Programme. The funds will be used to part-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, which will increase the capacity of scheduled waste management facilities in Malaysia.
AmInvestment Bank Bhd is the Principal Advisor and Lead Arranger for the Programme. BPMB Group Chief Executive Officer Roni Abdul Wahab said, “We are delighted to provide a financial guarantee for ER2E’s Sukuk Programme, as this project aligns with our purpose of delivering impact capital for national development.
BPMB has developed a framework known as Measuring Impact on National Development, or MIND to evaluate the impact of all our projects.”
MIND objectively measures a project’s developmental, socio-economic and environmental elements. The outcome complements BPMB’s credit evaluation process.
ER2E Group Executive Chairman Dato’ Mohd Shafiee Mohd Sanip said, “Situated in Pengerang, the RRDC R2E-SW is well positioned to serve companies nationally and within the industrial area and those operating within the southern Peninsula. This would be the first integrated waste treatment facility in Johor addressing the need for specialised treatment capacity for industrial waste.”
He said this project will also help with the waste generated at the nearby Pengerang Integrated Petroleum Complex. The project will further help to prevent incidents of improper disposal of these scheduled wastes, which lead to river contamination and general pollution.
The RRDC, R2E-SW project will take place in two phases, with the first phase comprising a secure landfill, pyrolysis and microwave plants, solidification plant, leachate treatment plant and all ancillary supporting infrastructure and is scheduled to commence operations by quarter four of 2023.
Phase two will involve the construction of a Resource to Energy-Scheduled Waste Facility which can treat a wider range of industrial waste and at the same time generate renewable energy using such wastes. ER2E is also involved in the collection, treatment, recycling, recovery and final disposal of scheduled waste. « Back