PNB Merdeka Ventures Completes RM6 Billion Sustainability Sukuk to Fund Merdeka 118 Development

KUALA LUMPUR (Nov 13): PNB Merdeka Ventures Sdn Bhd (PNBMV), a subsidiary of Permodalan Nasional Bhd (PNB), has successfully completed the issuance of its RM6 billion Sustainability Merdeka Sukuk Wakalah—marking the largest corporate and real estate sustainability sukuk in Asean, and Malaysia’s biggest AAA-rated corporate sukuk to date.

The financing exercise forms a key part of PNBMV’s strategy to support the continued development of the Merdeka 118 precinct, one of the most significant commercial property in KL developments currently underway.

Sukuk Receives Strong Demand From Institutional Investors

PNBMV said the sukuk attracted strong interest from more than 40 investors, resulting in a bid-to-cover ratio of 1.17 times. The notes were priced between 3.64% and 4.11%, with an average profit rate of 3.83%—lower than the company’s previous unrated sukuk issued in 2017.

Proceeds from the sukuk will be used to refinance the earlier issuance and to continue funding the large-scale mixed-use development surrounding Menara Merdeka 118.

The sukuk is positioned as part of PNBMV’s broader capital-management and funding diversification strategy, ensuring long-term stability and optimal financing costs for the Merdeka 118 project.

A New Landmark for Kuala Lumpur

The Merdeka 118 precinct is anchored by the 678.9-metre Menara Merdeka 118—the world’s second-tallest tower—which will serve as a new focal point for business and tourism in Kuala Lumpur. The wider development includes:

• Premium Grade A office space

• Park Hyatt Kuala Lumpur

• The View at 118 observation deck

• The 118 Mall

• Merdeka Residences Towers

• Oakwood Premier serviced residences

• Four-acre Merdeka Boulevard at 118 public park

As demand for modern commercial property in KL continues to rise—supported by broader economic growth and strong corporate leasing interest—the Merdeka 118 precinct is expected to become a key commercial hub, complementing other thriving corridors including office space in Bukit Jalil, industrial land in Selangor, and logistics-heavy areas such as factory zones in Puchong and industrial property clusters in the Subang area.

Advisers and Bookrunners

CIMB Investment Bank and Maybank Investment Bank acted as joint principal advisers, arrangers and bookrunners for the sukuk issuance.