KUALA LUMPUR: Standard Chartered Saadiq Malaysia has inked its first sustainability-linked commodity murabahah structured financing with Sunway Treasury Sukuk Sdn Bhd worth US$110mil.
In a joint statement, Standard Chartered Saadiq Malaysia chief executive officer Bilal Parvaiz said the move is part of the bank’s commitment to support clients in accessing innovative sustainable finance solutions to meet the breadth of their environmental, social and governance (ESG) ambitions.
“The unique features of this facility are the use of structured rates and sustainability-linked features that correspond to environmental and social key performance indicators (KPIs),” he said.
Meanwhile, Sunway Group chief financial officer Joyce Tan Wei Tze said the Sunway group remains steadfast in its sustainable development commitment.
“We hope to further strengthen our reputation as a responsible corporate citizen by participating actively in ESG financing solutions, to improve the quality of life within our community by, and in turn, making our nation a better place for future generations,” she said.
The companies said the transaction is a landmark sustainability-linked commodity murabahah structured financing in Asia’s real estate sector.
It is unique due to its syariah compliance features and comes with the flexibility of structured-rate financing and incorporates sustainability-linked features.
“The sustainability-linked feature has been structured around two KPIs that reinforce Sunway group’s ESG aspirations, including the uptake of renewable energy within their operations.
“The facility will be used as part of Sunway group’s working capital, overseas investments, and trade requirements,” it said. — Bernama
