The Asian Development Bank (ADB) will invest up to MYR300 million (approximately $75.8 million) in an Islamic bond (sukuk) issued by Sime Darby Property NEV (Holdings) Sdn Bhd. (a member of Sime Darby Property Berhad Group or Sime Darby Property) to support the development of digital infrastructure in Malaysia, reinforcing the country’s ambition to become a regional leader in the digital economy.

The investment is part of a sukuk wakalah program, an Islamic financing structure in which an agent deploys funds from multiple issuances into Shariah-compliant assets or businesses. It is Malaysia’s first sukuk for digital infrastructure and ADB’s first Islamic finance investment. Proceeds will fund the development of data centers in Sime Darby Property’s flagship industrial township, Elmina Business Park, about 30 kilometers northwest of Kuala Lumpur.

As the data centers are designed to be energy-efficient and environmentally sustainable, the sukuk qualifies as a green instrument in line with international sustainable bond standards.

“By combining scalable, energy-efficient data centers with green Islamic financing, this project supports Malaysia’s digital transformation and helps ensure the benefits of cloud services and digital platforms reach more people and businesses,” said ADB Director General for Southeast Asia Nianshan Zhang. “This partnership with Sime Darby Property marks a new milestone in strengthening digital infrastructure and deepening our private sector engagement in Malaysia.”

As demand for data centers grows rapidly across Southeast Asia, Malaysia is positioning itself as a key player in the digital economy. Under its MyDigital initiative—Malaysia’s national roadmap for embedding digital services into the economy—the country is focused on attracting investment, adopting new technologies, and ensuring that growth benefits businesses and communities alike.

Through ADB’s GSS+ Initiative, the bank supported the development of Sime Darby Property NEV (Holdings) Sdn Bhd’s green finance framework, enabling the sukuk to be issued as green and further advancing Sime Darby Property’s objective to deliver scalable digital infrastructure.

“As the general partner and manager of the NEV Fund, we are creating an institutional investment platform that enables us to develop high-quality build-to-suit assets required by global technology operators programmatically,” said Sime Darby Property Managing Director and Chief Executive Officer Dato’ Seri Azmir Merican. “We are the first developer in Malaysia to bridge sukuk financing with an institutional real estate private equity structure, supported by a gold-graded green finance framework that reinforces our commitment to sustainable growth and disciplined capital management.”

Maybank Islamic Berhad and OCBC Al-Amin Bank Berhad have also committed to invest in the sukuk while the Credit Guarantee & Investment Facility, an ADB trust fund, is providing a partial guarantee. In addition to investing in the bond, ADB acted as the joint sustainability structuring advisor.

This project supports ADB’s broader efforts to expand support for digital transformation, including its commitment to mobilize $20 billion by 2035 to finance digital corridors, data infrastructure, and artificial intelligence-ready economies across Asia and the Pacific. It also aligns with the bank’s objective to strengthen Islamic finance across Southeast Asia, as well as ADB’s $6 billion program to deepen the region’s capital markets.

Sime Darby Property NEV (Holdings) Sdn Bhd is structured under a private equity real estate fund launched by Sime Darby Property. With over 50 years of experience, Sime Darby Property is one of Malaysia’s largest property developers with active investments in residential, commercial, and industrial land segments. It has recently diversified into digital infrastructure.

ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.