KUALA LUMPUR: Malakoff Corp Bhd has lodged a RM700 million green sukuk programme to part-finance the development of a waste-to-energy (WTE) facility in Sungai Udang, Melaka scheduled for completion in 2029.
Its subsidiary Sungai Udang WTE Sdn Bhd, lodged the 30-year Asean Green Sustainable and Responsible Investment sukuk Wakalah with the Securities Commission.
The sukuk received a preliminary long-term rating of AA-IS from MARC Ratings Bhd, with proceeds earmarked for the facility’s development, design and construction.
The project is being developed under a 34-year concession, which took effect on June 18.
Sungai Udang WTE is 60 per cent owned by Malakoff, while the remaining 40 per cent is held by Alam Flora Environmental Solutions Sdn Bhd, a wholly owned subsidiary of Alam Flora Sdn Bhd.
Upon completion, the facility will be Melaka’s first WTE plant, capable of processing up to 1,056 tonnes of municipal solid waste daily and generating 22.1 megawatts of gross renewable energy.
It is expected to divert more than 300,000 tonnes of waste from landfills and prevent about 75,000 tonnes of carbon dioxide emissions annually, helping ease pressure on the state’s existing landfill as it approaches capacity.
Malakoff group chief executive officer Syahrunizam Samsudin said the project will strengthen the group’s environmental solutions business while complementing its power generation operations.
He said converting waste into energy would reduce landfill waste and methane emissions while supporting Malaysia’s transition towards more sustainable waste management.
The government has outlined plans to develop 18 WTE plants nationwide.
Syahrunizam said the Sungai Udang project will contribute towards Malakoff’s target of expanding its waste management capacity to 10,000 tonnes daily by 2031.
He added that Malakoff’s previous sustainable sukuk issuances through Malakoff Power Bhd in May 2025 and April 2026 were oversubscribed 10.34 times and 4.5 times respectively, reflecting investor confidence in the group’s business.
RHB Investment Bank Bhd is the principal adviser, lead arranger and lead manager for the sukuk programme.