China's Beijing Enterprises Water Group (BEWG) announced Thursday the issuance of 400-million-ringgit (93.5 million U.S. dollars) Islamic bond in Malaysia.
BEWG Malaysia's issuance of Islamic medium term notes (Sukuk Wakalah) marked the first-ever ringgit-denominated Sukuk on water infrastructure by a Chinese company.
According to BEWG Malaysia's CEO Ong Kian Min, the proceed from the Sukuk Wakalah issuance will be used to fund the refurbishment and upgrading of water treatment and distribution facilities in Malaysia's Terengganu state.
The total value of the project is 687 million ringgit, and it will be completed by November 2018, three years after works commenced in 2015, said Ong.
Malaysia is one of the largest Islamic capital markets, he said.
"We are expecting more projects. When we see the benefits in Sukuk, we can look at it for other projects as well," Ong said.
BEWG was involved in the construction of a 983-million-ringgit sewage treatment plant in the capital city of Kuala Lumpur. The project was handed over to the Malaysian government on Thursday.
Ong said BEWG Malaysia may invest in water resources comprehensive solution project in Malaysia's southern Johor state after receiving a formal mandate from the state government.
The company is also in talks with Sarawak state in East Malaysia for potential collaboration on a state-owned sewerage project.
