KUALA LUMPUR (Aug 12): HSBC Amanah Malaysia Bhd is arranging the first ASEAN Green Sustainable and Responsible Investment (SRI) Sukuk for Leader Energy Sdn Bhd worth RM260 million.

HSBC Amanah acts as the Sole Principal Adviser and Sole Lead Manager on this multi-tranche one to 18-year that will fund two solar photovoltaic power projects in Kedah which also marks Leader Energy’s debut project financing issuance in the Malaysian Ringgit Bond Market.  

Based in Penang, Leader Energy, an investment holding company owned by HNG Capital Group, is focused on renewable power generation.

In a statement today, HSBC Amanah said this sukuk has been assigned an AA-IS rating by Malaysian Rating Corporation Bhd (MARC).

It is accorded a “Gold” sustainability bond rating, the highest grade of MARC’s Impact Bond Assessment methodology, implying the sukuk’s alignment with International Capital Market Association’s Green Bond Principles, ASEAN Green Bond Standards, and the Securities Commission Malaysia’s SRI Sukuk Framework.

“HSBC Amanah is committed to transforming into a sustainable banking entity and the development of industry-leading sustainable product offerings such as ASEAN Green SRI Sukuk. This clearly demonstrates our continued commitment and ability to develop the landscape of sustainable banking products available in Malaysia,” HSBC Amanah chief executive officer Oz Ahmed said.

He said the new issuance also reflects HSBC Amanah’s commitment to financing projects that benefit communities and the environment in line with Bank Negara Malaysia’s Value-based Intermediation (VBI) initiative and HSBC Group’s responsibility to help finance global sustainable development and create greater value and impact.

Meanwhile, HNG Capital group chief executive officer Datuk Sean H’ng said the company is proud to partner with HSBC, which has a strong track record in developing sustainable solutions.

“Our first project financing sukuk issuance for HNG Capital Group is a success and we will continue to expand our footprint in renewable energy projects across our core markets in the ASEAN region,” he added.