HSBC has introduced its first Social Loan Principles (SLP) based financing in Southeast Asia for the real estate sector to Jayyid Land Sdn Bhd.
Jayyid Land is a joint venture property development company between Platinum Victory and Jakel Group. This deal will finance the development of Phase 1 of the J.Satine project in Setapak, Kuala Lumpur which comprises 2,068 units of affordable residential apartments under ‘Residensi Wilayah Keluarga Malaysia’.
‘Residensi Wilayah Keluarga Malaysia’ is a housing program under the purview of the Ministry of Federal Territories in collaboration with private sector developers to promote homeownership.
In a statement, HSBC said that amounting to RM136 million, HSBC’s inaugural social financing in Malaysia is granted to Jayyid Land by HSBC Amanah Malaysia Bhd and is aligned with the SLP and seeks to improve socio-economic activities targeted to mitigate social issues and housing affordability, a challenge faced especially in city centres.
The SLP is administered by the International Capital Markets Association and is aligned to the Social Bond Principles (“SBP”), one of the main internationally recognised voluntary issuance guidelines that promote transparency, disclosure, and reporting in the social bond market
Tan Sri Datuk Seri Gan Yu Chai, Managing Director of Platinum Victory Group and Executive Director of Jayyid Land Sdn Bhd said: “‘Residensi Wilayah Keluarga Malaysia’ targets first-time house buyers in Kuala Lumpur, mainly helping the B40 and M40 Group to own residential units in a safe and conducive environment with the benefit of purchasing at affordable pricing. This financing complements the government’s aim to build more affordable housing and promotes homeownership for all Malaysians.
As an international bank with strong credentials in sustainability, HSBC understood our direction to increase our focus on environmental, social and governance (ESG) and was able to collaborate and structure this SLP based financing for us – this is a remarkable milestone for Malaysia’s property sector that will create a positive impact for the community.
Amanda Murphy, Head of Commercial Banking, HSBC South and Southeast Asia said: “HSBC’s first social loan in Malaysia – and the first for the country’s real estate sector – not only supports Jayyid Land as they embed ESG into their operations but also helps deliver economic opportunities and social benefits to the local community. In Malaysia we have earmarked RM1 billion towards green and sustainable financing to enable businesses to embark on their sustainability journeys and switch to more sustainable ways of doing business.”
