Pengurusan Air Selangor Sdn Bhd (Air Selangor) has successfully priced the world’s first Blue Sukuk and Malaysia’s first Blue Bond/Sukuk issuance, raising RM200 million to finance sustainable water infrastructure and environmental projects.
The landmark issuance, known as the Blue SRI Sukuk Kelestarian, was issued under Air Selangor’s RM20 billion Islamic Medium Term Notes Programme and carries a 15-year tenure.
Air Selangor said proceeds will support blue finance, an emerging segment of sustainable finance focused on the protection, restoration and efficient management of water resources and water-related ecosystems.
CIMB Investment Bank Berhad acted as the Sole Sustainability Structuring Adviser and Sole Lead Manager for the transaction, assisting Air Selangor in enhancing its sustainability framework and executing the inaugural issuance.
CIMB Investment Bank Chief Executive Officer Nor Masliza Sulaiman described the transaction as a milestone for Malaysia’s sustainable finance market.
“CIMB is pleased to have played a key role in the successful issuance and to have advised Air Selangor on the enhancement of its Sustainable Development Sukuk Kelestarian Framework. This milestone demonstrates CIMB’s strength not only as a capital markets arranger, but as a trusted sustainability partner capable of delivering end-to-end advisory in innovative sustainable finance solutions,” she said.
The Blue Sukuk is issued under Air Selangor’s Sustainable Development Sukuk Kelestarian Framework Version 2.0, which has been enhanced to incorporate blue finance alongside green, social and sustainability financing under a single platform.
The revised framework aligns with the International Capital Market Association’s (ICMA) Green Bond Principles 2025, Social Bond Principles 2025 and Sustainability Bond Guidelines 2021, while also integrating the International Finance Corporation’s (IFC) Guidelines for Blue Finance Version 2.0.
Among the key enhancements is the introduction of Blue Sukuk to finance projects related to sustainable water and wastewater management, protection of water resources and long-term water security.
The framework also expands eligible project categories from four to eight, covering areas such as climate adaptation, energy efficiency, clean transportation and social initiatives.
To strengthen the framework’s credibility, RAM Sustainability Sdn Bhd has issued a Preliminary Assessment confirming that the eligible blue projects meet the requirements under the IFC’s Blue Finance Guidelines Version 2.0.
