ChemOne secures US$350 million insurance cover from ICIEC for Pengerang Energy Complex

The Islamic Corp. for the Insurance of Investment and Export Credit (ICIEC), a wholly owned subsidiary of the Islamic Development Bank (IsDB), has approved an insurance cover of US$350 million. This cover is structured to support Islamic banks participating in PEC’s project financing, underscoring the strong institutional confidence in PEC and its long-term strategic value to the region.

“ICIEC’s support is a powerful validation of PEC’s financial strength and far-reaching development impact. PEC will drive regional industrial growth, create thousands of jobs, and support regional value chains – all while adhering to global standards for sustainable and responsible financing,” said Mayank Vishnoi, Chief Financial Officer, ChemOne Group.

The ICIEC cover is structured under a Murabaha financing facility, providing 90% cover on both principle and profit – significantly de-risking the transaction for participating Islamic banks.

Strategic importance of PEC and commitment to sustainability

The Pengerang Energy Complex is envisioned as one of Southeast Asia’s most advanced and sustainable energy and petrochemical facilities. Upon completion, the project will significantly boost regional supply capabilities in aromatics, clean fuels, and related products, all while adhering to international environmental, social, and governance (ESG) standards.

The strong support from multilateral institutions reflects PEC’s strategic role in supporting energy resilience and sustainability. The project is also aligned with Malaysia’s ambitions to enhance downstream capabilities and increase the value-add in its hydrocarbon sector.

Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/11072025/chemone-secures-us350-million-insurance-cover-from-iciec-for-pengerang-energy-complex/