KUALA LUMPUR, April 30 — HSBC acted as the joint lead manager and joint bookrunner on the Malaysian government’s US$800 million (RM3.2 billion) 10-year Sustainability Sukuk — the world’s first sovereign US dollar sustainability sukuk — and US$500 million 30-year Sukuk, HSBC Malaysia said.

In a statement today, the bank said HSBC Amanah Malaysia would act as the joint sustainable development goals (SDG) structuring agent on the 10-year tranche.

HSBC Malaysia chief executive officer Stuart Milne said HSBC’s collaboration with the Malaysian government reflected its commitment to support the country in financing, managing and shaping the transition to a sustainable future while further developing Malaysia as a global hub for Islamic finance.

“The pandemic has emphasised the importance of sustainable finance for economic resilience. HSBC is intensifying the support we provide to our customers around the world to enable them to transition their businesses and economies in a more sustainable way,” he said.

Meanwhile, the country’s maiden sustainability sukuk was issued by the government based on its recently established SDG Sukuk Framework.

The offering, which was oversubscribed by 6.4 times, attracted high quality investor demand across multiple geographies.

“(This reinforces) 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 US dollar sukuk market,” HSBC Malaysia said.

The bank has an ambition to provide between US$750 billion and US$1 trillion of finance and investment by 2030 to help customers in the transition to net zero carbon emissions. — Bernama