Title: Case Studies on Islamic Finance for Asset Recycling – Malaysia
Language: English
Type: Document
Nature: Case Study
Published: January 1, 2017
Region: South Asia (SA)
Country: Malaysia
Sector: Energy and Power
Keywords: PPPs by Topic *, Asset Recycling **, Malaysia, Islamic Finance
Document Link(s):
- Malaysian Initiatives to Support Sustainable and Responsible Investment (SRI) E…
- Quantum Solar Park to issue RM1b green SRI sukuk
- Quantum Solar Park to issue Malaysia's first green sukuk
Document Summary:
These reports provide reference on the case studies on Malaysia's islamic finance for asset recycling.
Document Details:
Quantum Solar Park (Semenanjung) Sdn Bhd ("QSPS"), a special purpose vehicle, issued the largest solar project linked to green sukuk. The proceeds from the sukuk issuance will be used to build three large-scale solar photovoltaic plants in the states of Kedah, Melaka and Terengganu in Malaysia at a total cost of RM 1.25 billion. The projects are collectively expected to generate and supply about 282,000 MW of electricity annually to Malaysia’s electric utility company, Tenaga Nasional, under the respective power purchase agreements over a period of 21 years. The projects will cover a combined land area of almost 600 acres. In terms of social impact as well as the sustainability aspects of the projects, it is expected to reduce 193,000 tons of carbon per year. This is enough to power up about 90,000 over homes as well as create 3,000 jobs.
The assets used for this project were Shari'ah-compliant commodities (excluding ribawi items in the category of medium of exchange such as currency, gold and silver) which are provided through Bursa Suq alSila’.
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