ChemOne Secures $350M Insurance Cover for Pengerang Energy Complex
Deal News | Jul 08, 2025 | Zawya
Singapore-based ChemOne Group has secured a $350 million insurance cover from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a subsidiary of the Islamic Development Bank (IsDB), for its Pengerang Energy Complex (PEC) in Johor, Malaysia. This landmark insurance, structured under a Murabaha financing facility, provides 90% cover on both principal and profit, significantly de-risking the transaction for participating Islamic banks such as National Bank of Kuwait, Qatar National Bank, and Al Rajhi Bank Malaysia. Al Rajhi Bank KSA plays a central role as the Lead Islamic bank and coordinator to ICIEC. Additionally, the IsDB Group has made a direct investment of $150 million through Istisna-Ijara structures, elevating the group's total support for PEC to over $500 million. This massive financing will aid in establishing PEC as one of Southeast Asia's most advanced energy and petrochemical facilities, contributing to significant industrial growth and job creation in the region while aligning with Malaysia's sustainability and downstream sector ambitions.
Sectors
- Petrochemicals
- Insurance
- Banking and Finance
Geography
- Malaysia – The Pengerang Energy Complex is located in Johor, Malaysia, indicating a geographical focus.
- Singapore – ChemOne Group, the organization leading the project, is based in Singapore.
- Middle East – ICIEC and several participating Islamic banks such as Al Rajhi Bank and Qatar National Bank have roots in the Middle East.
Industry
- Petrochemicals – The Pengerang Energy Complex focuses on petrochemical production, making this industry highly relevant.
- Insurance – The article focuses on a significant insurance agreement with ICIEC, which is crucial for the project's financing.
- Banking and Finance – Numerous banks are involved in financing the project, highlighting the importance of this industry.
Financials
- $350 million – Insurance cover provided by ICIEC for Pengerang Energy Complex.
- $150 million – Direct investment by IsDB Group via Istisna-Ijara structures.
- $500 million – Total IsDB Group support including investments and credit enhancements.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ChemOne Group | Project Owner | Company | Singapore-based conglomerate leading the Pengerang Energy Complex initiative. |
| Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) | Insurer | Company | Wholly-owned subsidiary of the Islamic Development Bank, providing $350 million insurance cover. |
| National Bank of Kuwait (NBK) | Participating Islamic Bank | Company | One of the banks involved in financing the Pengerang Energy Complex. |
| Qatar National Bank (QNB) | Participating Islamic Bank | Company | One of the banks involved in financing the Pengerang Energy Complex. |
| Al Rajhi Bank Malaysia | Participating Islamic Bank | Company | One of the banks involved in financing the Pengerang Energy Complex. |
| Al Rajhi Bank KSA | Lead Islamic Bank & Coordinator | Company | Plays a pivotal role in coordinating the insurance with ICIEC. |
| Islamic Development Bank (IsDB) | Investor & Supporter | Company | ICIEC's parent organization and a major supporter of the project through both insurance and investment. |