ChemOne Group, a Singapore-based conglomerate specialising in petrochemicals and green energy, has announced a landmark $350 million insurance cover from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) for its Pengerang Energy Complex (PEC) in Johor, Malaysia. This insurance, the largest ever project finance support by ICIEC, is structured under a Murabaha financing facility, providing 90% cover on both principal and profit, significantly de-risking the transaction for participating Islamic banks.
The participating banks include National Bank of Kuwait, Qatar National Bank, Al Rajhi Bank Malaysia, and Al Rajhi Bank KSA, with the latter serving as the lead Islamic bank and coordinator to ICIEC. The Islamic Development Bank (IsDB) Group has further reinforced its commitment with a direct investment of $150 million, bringing its total support for PEC to over $500 million.
Mayank Vishnoi, Chief Financial Officer of ChemOne Group, stated, “ICIEC’s support is a powerful validation of PEC’s financial strength and far-reaching development impact.”
The Pengerang Energy Complex is set to become one of Southeast Asia’s most advanced energy and petrochemical facilities, adhering to international environmental, social, and governance standards. Upon completion, it will significantly enhance regional supply capabilities in aromatics and clean fuels. The project is expected to create approximately 7,000 jobs during construction and 300 operational roles post-completion, with 80% of these positions filled by Malaysians.
With a projected annual export turnover of $5 billion, PEC aims to position the Pengerang Integrated Petroleum Complex as a regional oil and gas hub, bolstering Malaysia’s standing in the regional value chain.
“`
