KLDX and Cape EMS launch US$1.72mil tokenised project financing dedicated to renewable energy

• Note issued as digital security on blockchain-enabled platform, allows for fractional ownership
• Sets precedent in Malaysia & regionally for how infra projects can access capital markets efficiently

In a watershed moment for the Malaysian capital markets, Cape EMS Bhd and Kapital DX Sdn Bhd (KLDX) have announced a pioneering financial instrument that bridges the disparate worlds of industrial manufacturing, renewable energy, and digital assets which represents Malaysia’s first tokenised project financing specifically dedicated to a renewable energy project. The parties claim it sets a precedent in Malaysia and regionally, for how mid-tier infrastructure projects can access the capital markets efficiently.

Mid-tier infra projects refer to projects that sit between small, pilot-scale developments and large, multi-billion infrastructure projects. These projects are typically asset-backed and commercially operating, but may not have the scale for traditional public capital markets.

Cape Renewables Sdn Bhd, the green energy arm of Main Market-listed Cape EMS, has officially launched a fundraising programme on KLDX, Malaysia’s first Securities Commission-regulated, Initial Exchange Offering (IEO) platform. The issuance is structured as a Renewable Energy Infrastructure Note aiming to fund the installation and operation of an industrial rooftop solar photovoltaic (PV) system for a prominent industrial conglomerate client in the automotive industry.

For this current tranche, Cape Re is raising US$1.72 million (RM7 million) with the tranche closing on the 27th of Jan.

This transaction is distinguished by several innovative features:

1. Digital Tokenisation: The investment note is issued as a digital security on a blockchain-enabled platform, allowing for fractional ownership, broader investor participation and secondary marketability.
2. Corporate Guarantee: The notes are backed by a corporate guarantee from the parent company, Cape EMS, thereby enhancing the credit profile of the issuance from a project-finance risk level to a corporate-credit risk level.
3. Attractive Yield: The instrument offers an attractive rate of return that positions it competitively against traditional fixed-income products and fixed deposits, with a coupon that is payable quarterly and a tenure of 24 months.

The launch is underpinned by strong endorsements from the participating entities, reflecting a unified vision for the future of private market financing and green infrastructure.

Selvarany Rasiah, founder and CEO of KLDX said, “This issuance marks a pivotal evolution in Malaysia’s private markets. By leveraging KLDX’s blockchain technology, we are not only streamlining the fundraising process for Cape Renewables but are also fulfilling our core mission: to democratise access to high-quality, private market assets.”

Noting that traditionally, infrastructure financing of this nature was the exclusive domain of institutional banks or large private equity firms, she adds, “Today, we are opening this door to a wider spectrum of investors, allowing them to participate via our website, in the green economy with transparency, efficiency, and marketability. The issuance demonstrates how KLDX’s regulated digital platform can bridge the funding gap for sustainable projects while offering investors attractive, risk-adjusted returns.”