RAM rates world's first UN SGD sukuk issued by HSBC Amanah Malaysia

RAM Ratings said in line with the downward bias in global interest rates and the subsequent search for yields, domestic bond yields also retreated across the entire maturity spectrum and rating bands in June.

KUALA LUMPUR: RAM Ratings has rated the world’s first United Nations (UN) Sustainable Development Goals (SDG) sukuk issued by HSBC Amanah Malaysia Bhd.

The sukuk is under the bank’s RM3bil multi-currency sukuk programme (2012/2032) which carries an AAA/stable rating. 

“This global first by HSBC Amanah puts Malaysia again on the sustainable finance world map,” says Foo Su Yin, CEO of RAM Ratings. 

The proceeds from this sukuk will be utilised for working capital in the ordinary course of HSBC Amanah’s Islamic banking business, to finance eligible businesses and projects in accordance with the HSBC SDG bond framework. 

HSBC Amanah’s financial institution ratings stand at AAA/Stable/P1, premised on the bank’s strategic role as the Islamic arm of HSBC Bank Malaysia Bhd (rated AAA/Stable/P1 by RAM) as well as its status as one of two global hubs of HSBC Holdings plc’s Amanah network. 

“HSBC Amanah is operationally integrated with HSBC Bank Malaysia and benefits from the HSBC Group’s solid global franchise, international network and expertise. 

“We believe that the Bank will continue to enjoy parental support when needed,” said RAM.
 
RAM is an active contributor to sustainability and green finance globally. 

On May 26, 2016, RAM joined the global line-up of six pioneer credit rating agency signatories to UN-supported Principles for Responsible Investment’s Statement on ESG in Credit Ratings.

In 2017, RAM rated the world’s first green sukuk issued by a solar power player, Tadau Energy Sdn Bhd. 

In 2015, RAM rated the world’s first Sustainable Responsible Investment sukuk – Sukuk Ihsan – pioneered by Khazanah Nasional Bhd, the Malaysian government’s strategic investment fund.

RAM’s sister company, RAM Consultancy Services Sdn Bhd, is the first Asean-based provider of sustainability ratings and second opinions on green bonds and sukuk.