PETALING JAYA: The Public Sector Home Financing Board (LPPSA) has received RM1bil in funding from HSBC Amanah to provide home financing for civil servants.
This is LPPSA’s inaugural non-government guaranteed financing facility, aimed at supporting its primary funding programme.
The Islamic financing by HSBC Amanah is expected to contribute to effective debt management by optimising the government’s guarantee exposure.
LPPSA chief executive officer Farid Nawawi said the collaboration with HSBC will enable LPPSA to play a vital role in helping nearly 1.6 million civil servants in the country, across all ranks, to acquire home financing.
“This initiative will further strengthen our fiscal discipline as outlined under the Fiscal Responsibility Act,” said Farid in a statement.
With the RM1bil Islamic Receivables Finance facility from HSBC Amanah, LPPSA pointed out that it has enhanced its “funding agility”.
It also said the facility is designed to complement its primary government-guaranteed sukuk programme, allowing LPPSA to diversify its funding options.
The approach ensures competitive funding costs while reinforcing its core mission of providing sustainable home financing for the public sector.
