MEX II Sukuk Holders Sue Banks!

 

CIMB Group Holdings Bhd’s investment banking arm, CIMB Investment Bank Bhd (CIMB IB), and 11 others have been hit with a RM1.38 billion suit from sukuk holders of the MEX II highway. The suit was filed by 14 holders of the sukuk murabahah issued by MEX II Sdn Bhd over losses they allegedly suffered from the purchase of the notes. CIMB said the plaintiffs filed amended writ of summons and statement of claim on Jan 2, 2026, which were served on CIMB IB. 

Besides CIMB IB, the other defendants are MEX II; Maju Lingkaran Development Sdn Bhd; Maju Holdings Sdn Bhd; Tan Sri Abu Sahid Mohamed, his wife and son; Datuk Yap Wee Leong; TMF Trustees Malaysia Bhd; Crowe Malaysia PLT; HSS Engineers Bhd 30%-owned associate HSS Integrated Sdn Bhd; and Straits Consulting Engineers Sdn Bhd.

 

Source: https://en.wikipedia.org

 

The sukuk holders, it said, are seeking a court declaration that CIMB IB is jointly and severally liable with the other defendants for all losses suffered by the plaintiffs arising from the purchase of the sukuk murabahah. Consequently, the sukuk holders seek judgement against each of the defendants for the “dissolution amount” of RM1.38 billion as at Jan 3, 2022, or an amount the court deems fit. Alternatively, in CIMB IB's case, “restoring and/or making good” to the plaintiffs, CIMB IB’s proportionate share of such losses. CIMB said the suit is not expected to have a material operational or financial impact on the group. The lender said it is confident that CIMB IB has at all material times performed its duties and obligations in its various capacities in accordance with standards prescribed by law and contractually. 

The 14 sukuk holders who initiated the suit are Credit Guarantee Corporation Malaysia Bhd; Amanah Raya Bhd; Syarikat Takaful Malaysia Keluarga Bhd; Syarikat Takaful Malaysia Am Bhd; Zurich Life Insurance Malaysia Bhd; Zurich Takaful Malaysia Bhd; RHB Asset Management Sdn Bhd; RHB Islamic International Asset Management Bhd; Maybank Trustees Bhd; Amanahraya Trustees Bhd; HSBC (Malaysia) Trustee Bhd; AHAM Asset Management Bhd; AIIMAN Asset Management Sdn Bhd; and OPUS Asset Management Sdn Bhd. The 14 hold about RM563.2 million or 43.33% of the RM1.3 billion sukuk murabahah. The MEX II sukuk was issued in 2016 for the construction of the 16.8km three-lane dual-carriageway connecting the Putrajaya Interchange of the MEX I Highway and KLIA/KLIA 2. 

MEX II was initially slated for completion in November 2018 but was deferred to October 2019. However, the highway remains incomplete as of now. MEX II’s sukuk faced issues in paying its principal and profit in 2021, which saw it defer payments. The debt notes were suspended by end-2021 by CIMB IB, after payments due were not received despite extensions granted by sukuk holders. Following the default and subsequent failed restructuring attempts, MEX II was placed under receivership in 2022. Meanwhile, the highway project remains stalled. 

This is a complicated case with fraud, alcohol, women and wine. It will take some effort on the sukuk holders to prove CIMB IB had failed to conduct detailed due diligence, but it addresses the issue that banks have to be more vigilant on management and shareholder backgrounds. 

Reference:

CIMB Investment Bank, 11 others hit with RM1.38b suit from MEX II sukuk holders, Izzul Ikram, theedgemalaysia.com, 6 January 2026