World’s FIRST United Nations Sustainable Development Goals sukuk

HSBC Amanah Malaysia Berhad (HSBC Amanah) has launched the world’s first United Nations (UN) Sustainable Development Goals (SDG) sukuk reflecting HSBC Amanah’s commitment to financing projects that benefit communities and the environment in line with HSBC Group’s responsibility to help finance global sustainable development.

This is the second SDG issuance from an HSBC entity globally, following HSBC Group’s USD1.0 billion SDG Bond in 2017 and is in line with the Group’s commitment to provide USD100 billion in sustainable financing and investment by 2025. The goal is one of five new commitments that HSBC has made to tackle climate change and support sustainable growth in the communities where the organisation serves.

“This sukuk is the world’s first ever benchmark sustainable sukuk issuance by a financial institution referencing the UN SDGs as use of proceeds. As such, it is a landmark in the MYR and global sukuk market,” said Stuart Milne, Group General Manager and Chief Executive Officer HSBC Bank Malaysia Berhad. “HSBC has always been at the forefront of innovation in Islamic financing, having structured and lead managed numerous award winning landmark sukuk transactions on behalf of our clients. This issuance by HSBC Amanah demonstrates our continued commitment to the Government of Malaysia’s efforts to promote Malaysia as an Islamic finance hub and is a strong testament to HSBC’s leadership in sustainable financing.”

Stuart Milne, Group General Manager and Chief Executive Officer HSBC Bank Malaysia Berhad

“This landmark issuance is in line with the newly developed Value-based Intermediation (“VBI”) initiative championed by Bank Negara Malaysia which seeks to shift the focus of the Islamic Finance industry to integrate environmental and social tenets into banking activities,” added Arsalaan Ahmed, Chief Executive Officer, HSBC Amanah. “We are pleased with this issuance that is aimed at starting a conversation in Islamic banking around SDGs and thus supporting VBI. This successful issuance also demonstrates our continued leadership in sukuk and contribution to the development of Shariah compliant Debt Capital Markets.”

“UNDP welcomes HSBC’s commitment to using funds raised in the capital market to invest in the Sustainable Development Goals,” said Achim Steiner, Administrator of the United Nations Development Programme (UNDP).  “A world first, HSBC’s pioneering ‘SDG sukuk’ is a prime example of how to create innovative financing for the Goals, and marks a milestone in aligning Islamic finance with the SDGs.  UNDP is growing its work in this exciting area, working both with the private sector and government stakeholders.”

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