KUALA LUMPUR: Permodalan Kelantan Bhd has issued RM35 million in social sukuk, marking Malaysia's first such issuance by a state agency and the first in Kelantan.
The issuance was made under its RM300 million sukuk Wakalah, following its inaugural RM265 million sukuk issuance in November 2025, which was also the first sukuk in Kelantan.
Maybank Investment Bank Bhd acted as the sole principal adviser, lead arranger, lead manager and sustainability structuring adviser, while Maybank Islamic Bhd was the Shariah adviser and sole subscriber.
Permodalan Kelantan chairman Datuk Ahmad Yaakob said the issuance would provide an important source of financing to expand the company's Ar-Rahn Islamic pawnbroking business and widen access to Islamic financial services.
"The issuance of this social sukuk not only provides us with an important source of financing but also serves as a catalyst for the expansion of the Ar-Rahn business and enhances our capacity to provide wider access to Islamic financial services for the community," he said.
Permodalan Kelantan established its Ar-Rahn Islamic pawnbroking business on March 12, 1992, becoming Malaysia's first commercial Islamic pawnbroking institution
Ar-Rahn currently operates 35 branches across nine states, including Kelantan, Pahang, Selangor, Kuala Lumpur, Kedah, Perlis, Johor, Sabah and Sarawak.
The financing will strengthen Ar-Rahn's operations and financing capacity, while supporting the opening of new branches in high-potential locations.
The expansion is expected to improve Permodalan Kelantan's income-generating capacity and contribute to the overall performance of its parent company, Perbadanan Kemajuan Iktisad Negeri Kelantan (PKINK).
The expansion would also benefit micro-entrepreneurs and underserved communities by providing access to inclusive financing.
Permodalan Kelantan established a social finance framework to support the issuance, which received a "Gold" impact assessment from independent reviewer MARC Solutions Sdn Bhd.
The framework aligns with the Securities Commission Sustainable and Responsible Investment Sukuk Framework, the Asean Social Bond Standards and the International Capital Market Association's Social Bond Principles.
Maybank IB deputy chief executive officer Tengku Ariff Azhar Tengku Mohamed said the transaction demonstrated the role of capital markets in channelling funding towards social outcomes.
Maybank's involvement is also aligned with its ROAR30 targets to mobilise RM300 billion in sustainable finance by 2030, following RM176.12 billion mobilised between 2021 and 2025.
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