Sabah Energy Corp raises RM350mil via maiden sukuk

By the Editorial Team · Friday, September 18, 2026

Sabah Energy Corp Sdn Bhd completed its first sukuk issuance, raising RM350 million under a RM3 billion sukuk wakalah programme with a AAA rating and 2.2 times oversubscription. This funding will support SEC’s Peta 2030 agenda and Sabah’s energy transition goals by expanding infrastructure, power generation, and renewable energy capabilities.

Sabah Energy Corp Sdn Bhd (SEC) has successfully completed its inaugural sukuk issuance, raising RM350 million under a broader RM3 billion sukuk wakalah programme. The issuance was announced on September 18 in Kuala Lumpur through a joint statement by SEC and Maybank Investment Bank Bhd.

The sukuk received a long-term AAA rating with a stable outlook from RAM Rating Services Bhd, reflecting strong credit confidence despite ongoing geopolitical uncertainties impacting financial markets. The offering was 2.2 times oversubscribed, underscoring robust demand amid prevailing market volatility.

This sukuk was priced through a book-building exercise, marking a first for a Sabah state government-linked company. Datuk Azmir Abd Rahman, SEC group chief executive officer, noted that the sukuk wakalah programme would serve as a scalable and flexible funding platform to advance the company’s Peta 2030 agenda. This agenda focuses on enhancing SEC’s core gas and infrastructure sectors, expanding power generation and renewable energy capabilities, and supporting disciplined investments across Sabah’s energy value chain.

Azmir also linked the issuance to broader state objectives under the Sabah Energy Roadmap Action Plan (Seramp) 2040, aimed at strengthening energy security, accelerating the energy transition, and improving the reliability of the energy supply within the state.

From the financial sector, Maybank Investment Banking Group chief executive officer Michael Oh-Lau highlighted that the sukuk issuance would help SEC broaden and diversify its access to long-term ringgit-denominated funding sources. He added that it would also raise the profile of both SEC and Sabah among domestic and international institutional investors. The strong level of oversubscription, he said, demonstrated investor confidence in SEC’s credit strength and growth prospects.

The successful issuance of this sukuk represents a milestone for both Sabah Energy Corp and the state, providing a mechanism to support ongoing and future energy sector developments as Sabah looks to meet growing demand and transition towards renewable energy sources.

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