KUALA LUMPUR – HSBC acted as the joint lead manager and joint bookrunner on the Malaysian government’s US$800mn 10-year Sustainability Sukuk and US$500mn 30-year Sukuk, and HSBC Amanah Malaysia acted as the joint sustainable development goals (SDG) structuring agent on the 10-year tranche which represents the world’s first sovereign US Dollar Sustainability Sukuk.
The country’s maiden Sustainability Sukuk was issued by the Government of Malaysia based on its recently established SDG Sukuk Framework. The transaction, which is also Malaysia’s first global sukuk issuance since 2016, represents the country’s continued commitment towards sustainable long-term growth in line with its ambitions as part of the Shared Prosperity Vision 2030.
“The offering which was oversubscribed by 6.4 times, attracted high quality investor demand across multiple geographies reinforcing investor interest in sustainable forms of financing which are fundamental to future proofing the country’s economy. This is also the tightest coupon ever achieved by the Government in the USD Sukuk market. Proceeds from the Sustainability Sukuk issuance will be used for eligible social and green projects aligned to the United Nations SDG Agenda,” said HSBC in a statement on April 30.
The bank added, “HSBC is setting out an ambitious plan to prioritise financing and investment that supports the transition to a net zero global economy and helps to build a thriving, resilient future for society and businesses. At the heart of the plan is a pledge to reduce financed emissions from the bank’s portfolio of customers to net zero by 2050 or sooner, in line with the goals of the Paris Agreement.
“The bank has an ambition to provide between USD750 billion and USD1 trillion of finance and investment by 2030 to help customers achieve this goal.
“HSBC Amanah specifically is committed to transforming itself into a sustainable banking entity and and the sustainability-linked transactions already executed by HSBC Amanah inclusive of the Government of Malaysia’s debut Sustainability Sukuk are part of the journey to this important goal.”
In 2017, HSBC issued the world’s first United Nations (UN) Sustainable Development Goals (SDGs) bond followed by the world’s first UN SDG sukuk by HSBC Amanah in 2018.