ADB Backs Malaysia's First Green Sukuk for Digital Infrastructure

The investment will be made through a sukuk wakalah issued by Sime Darby Property NEV (Holdings) Sdn Bhd, a member of the Sime Darby Property Group.

The Asian Development Bank (ADB) will invest up to MYR300 million (around $75.8 million) in Malaysia's first Islamic green bond dedicated to digital infrastructure, supporting the development of energy-efficient data centres that will strengthen the country's growing digital economy.

The investment will be made through a sukuk wakalah issued by Sime Darby Property NEV (Holdings) Sdn Bhd, a member of the Sime Darby Property Group. The proceeds will finance new data centres at Elmina Business Park, a flagship industrial township located about 30 kilometres northwest of Kuala Lumpur.

The transaction marks two important milestones: Malaysia's first sukuk designed specifically for digital infrastructure and ADB's first-ever investment in Islamic finance.

Green financing supports digital transformation

The data centres have been designed with energy efficiency and environmental sustainability in mind, allowing the sukuk to qualify as a green financial instrument under internationally recognised sustainable bond standards.

ADB Director General for Southeast Asia Nianshan Zhang said the combination of green Islamic finance and modern digital infrastructure will help expand access to cloud services and digital platforms while supporting Malaysia's ambition to become a leading digital economy in Southeast Asia.

Malaysia has seen growing demand for data centres as businesses increasingly adopt cloud computing, artificial intelligence and other digital technologies. Through its MyDigital national strategy, the country is working to attract investment, accelerate technology adoption and ensure digital growth benefits businesses and communities across the economy.

Partnership strengthens sustainable investment

ADB also supported the project through its GSS+ Initiative by helping Sime Darby Property develop a green finance framework, enabling the sukuk to meet recognised environmental financing standards.

Sime Darby Property Managing Director and Chief Executive Officer Dato' Seri Azmir Merican said the initiative creates a platform for building high-quality digital infrastructure required by global technology companies. He added that the company is the first property developer in Malaysia to combine sukuk financing with an institutional real estate private equity structure backed by a gold-rated green finance framework.

The financing is further supported by Maybank Islamic Berhad and OCBC Al-Amin Bank Berhad, which have committed to invest in the sukuk. The Credit Guarantee & Investment Facility, an ADB trust fund, will provide a partial guarantee, while ADB also served as a joint sustainability structuring adviser.

Part of a broader regional digital strategy

The investment forms part of ADB's wider commitment to mobilise $20 billion by 2035 to support digital corridors, data infrastructure and artificial intelligence-ready economies across Asia and the Pacific. It also contributes to the bank's efforts to expand Islamic finance in Southeast Asia and supports its $6 billion programme to deepen regional capital markets.

With more than five decades of experience in residential, commercial and industrial development, Sime Darby Property has increasingly expanded into digital infrastructure, reflecting Malaysia's growing role as a regional destination for technology investment.