New Pantai Expressway Sdn Bhd (NPE), a wholly owned subsidiary of IJM Corporation Bhd, has raised RM54 million through a landmark Sustainability-Linked Sukuk (SLS) to finance the construction of the New Pantai Highway Extension (NPE2), while linking the project’s financing to measurable sustainability targets.
The issuance marks the world’s first Sustainability-Linked Sukuk for a highway project, embedding ESG performance targets directly into the financing structure.
The proceeds will support the development of the 6.4km elevated NPE2 highway, which forms part of the Kuala Lumpur Traffic Master Plan 2040 and is designed to improve connectivity between the existing New Pantai Expressway (NPE), Sungai Besi Expressway (BESRAYA) and the upcoming Laluan Istana-Kiara Expressway (LIKE).
The project, with a total length of approximately 15.8km including directional ramps, will link the Pantai Dalam Toll Plaza to the Jalan Istana Interchange via Jalan Syed Putra, improving traffic dispersion and accessibility into central Kuala Lumpur.
Construction of NPE2 is being undertaken by IJM Construction Sdn Bhd under a design-and-build contract awarded in November 2025, with completion targeted by end-2029.
The Sustainability-Linked Sukuk is issued under NPE’s unrated Islamic Medium Term Notes Programme of up to RM1.42 billion in nominal value and adopts a performance-based structure tied to two key sustainability indicators — occupational health and safety measured through the Lost Time Injury Frequency Rate and green infrastructure certification.
The project will target certifications under the Sustainable Infrastructure Rating Tool and the Malaysia Green Highway Index, which assess infrastructure projects based on environmental and social factors including resource management, waste reduction, land use and safety practices.
NPE2 will incorporate sustainable construction features, including the use of precast structural components and reusable steel moulds to reduce timber consumption, as well as rainwater harvesting, solar energy applications and energy-efficient lighting systems to lower long-term operational energy use.
The sukuk was arranged by Maybank Investment Bank Bhd and CIMB Investment Bank Bhd, which acted as joint principal advisors, joint lead arrangers, joint lead managers and joint sustainability structuring advisors.
