Malaysian green sukuk

A green sukuk is one way a Malaysian project is paid for once it is ready to build. It is construction capital, or a refinance of a plant that already has a contract. It is not money for a pilot, a test batch, or a study. The issuer is a Malaysian project vehicle, on BioJejak's own account. A licensed principal adviser leads the issue. BioJejak does not lodge it alone.

The project has to be one a buyer will underwrite. An offtake, or something with the same effect, states the cash the plant will receive. Without that contract the issue stops. The planning size for a standalone issue is about RM100 million. Smaller assets are gathered until they reach that scale. The tenor is set to the life of the plant, so the financing is not a short loan that has to be replaced halfway through.

The paper is BioJejak's own green framework, not someone else's programme. It says what the money may be spent on, how a project is chosen, that the proceeds sit in a designated account, and that allocation and impact are reported each year. The uses that fit this work are bioenergy, green hydrogen, and pollution prevention, including biochar and soil products. A Shariah adviser sets the structure. A trustee holds the issue for the sukuk holders. An independent reviewer gives an opinion before launch, and a verifier checks the spending afterwards. Lodgement is with the Securities Commission under its lodge-and-launch regime. The external-review cost is largely recoverable under the Commission's SRI sukuk and bond grant, up to 90 percent and capped at RM300,000. Those terms are confirmed with the principal adviser at the time of the issue.

This note is the route. It is not an announcement that a sukuk has been issued.

See finance structuring.