Maybank Leads RM4B Sukuk for Sarawak Petchem Plant

Maybank has announced its significant role in financing and providing hedging facilities for Sarawak Petchem’s first methanol production plant, which officially launched today. Situated in Tanjung Kidurong, Bintulu, this state-of-the-art facility boasts a production capacity of 1.75 million tonnes of methanol annually, positioning it as one of the largest methanol production plants in the Asia-Pacific region.

The project is funded through a multi-tranche structure that includes a Sukuk Wakalah Programme worth RM4 billion and a syndicated term financing facility amounting to USD380 million. Additionally, various hedging facilities are provided to manage foreign currency exposure and financing rate risks. Maybank Investment Bank Berhad played a pivotal role in this project as the Joint Principal Adviser, Joint Lead Arranger, and Joint Lead Manager for the Sukuk Wakalah, as well as the Mandated Lead Arranger and Bookrunner for the syndicated financing.

Comprehensive Financial Solutions in Maybank

Maybank’s involvement extends beyond financing; the bank also provides hedging facilities to mitigate risks associated with foreign currency exposure and financing rates. This financial support is crucial for Sarawak Petchem to manage cash flow efficiently and optimize working capital. The tailored financial solutions offered by Maybank ensure that Sarawak Petchem can navigate market volatility effectively.

Dato’ John Chong, Group CEO of Global Banking at Maybank, expressed the bank’s commitment to the project, stating, “By inaugurating the plant today on Sarawak Day, it highlights this project as a milestone in the state’s industrial development. This plant will be a catalyst to extend the oil and gas downstream value chain and transform Sarawak into a petrochemical hub in the region. In turn, this will create more job opportunities for East Malaysians and attract diverse foreign direct investments, boosting the state’s economy and contributing to future prosperity.”

Economic Impact and Job Creation

The launch of this methanol plant marks a significant milestone for Sarawak’s industrial sector. The facility is expected to drive the extension of the oil and gas downstream value chain, transforming Sarawak into a prominent petrochemical hub. This transformation is anticipated to generate numerous job opportunities for residents of East Malaysia and attract a wide range of foreign direct investments, thereby bolstering the state’s economy.

Dato’ John Chong further highlighted, “Our financing offers Sarawak Petchem the flexibility and capability to hedge and optimize working capital. By offering tailored financial solutions, we enable the company to manage cash flow efficiently and mitigate risks associated with market volatility. Maybank is committed to supporting the success of the company.”

The establishment of Sarawak Petchem’s methanol plant signifies a strategic move towards enhancing Malaysia’s petrochemical industry. With Maybank’s robust financial backing and comprehensive support, the plant is set to become a cornerstone of Sarawak’s economic development. This initiative underscores Maybank’s dedication to facilitating large-scale industrial projects that have the potential to transform regional economies and contribute to national growth.

For businesses seeking expert financial solutions and comprehensive support in industrial projects, Maybank stands ready to assist. Contact Maybank today to explore tailored financial services designed to optimize your business operations and mitigate market risks. Let us help you achieve your business goals with confidence and efficiency.