Singapore-based petrochemical conglomerate secures $350m cover from ICIEC

The Islamic Development Bank (IsDB) Group is also investing $150m.

ChemOne Group has secured a $350m insurance cover from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) to support financing for its Pengerang Energy Complex (PEC) in Johor, Malaysia.

Structured under a Murabaha facility, the cover provides 90% protection on principal and profit for Islamic banks involved in the deal, including Al Rajhi Bank KSA, National Bank of Kuwait, Qatar National Bank, and Al Rajhi Bank Malaysia. Al Rajhi Bank KSA is serving as lead bank and ICIEC coordinator.

The Islamic Development Bank (IsDB) Group is also investing $150m through Istisna-Ijara structures, bringing total support for the project to over US$500m.

Located in the Pengerang Integrated Petroleum Complex, PEC will be one of the largest integrated condensate splitter and aromatics facilities globally. 

It is projected to generate US$5b in annual exports, create 7,000 construction jobs, and award $1.2b in contracts to local SMEs. 

The project will use Honeywell’s LD Parex technology to meet ESG standards and improve energy efficiency.