Our Partner, Celine Rangithan together with associates, Isabella Ng Ling Ling and Christin Wong Tsui Yuan from Zul Rafique & Partners’ Banking & Finance practice group have advised and acted for HSBC Amanah Malaysia Berhad on the issuance of Malaysia’s first Sustainability-Linked Sukuk Wakalah by Yinson Holdings Berhad pursuant to its Islamic Medium Term Notes Programme of up to RM1 billion in nominal value.

The initial issue size of RM700 million was upsized to RM1 billion due to overwhelming demand with an orderbook of RM1.66 billion.

The landmark issuance leverages on Yinson’s Sustainability-Linked Financing Framework and Climate Goals Roadmap, supporting Yinson’s efforts to achieve its climate transition strategy and reinforce its commitment towards a low emission future by achieving carbon neutrality by 2030 and net zero by 2050.

“Together with HSBC Amanah, we are proud to be making history by establishing, and successfully completing, Malaysia’s very first sustainability-linked sukuk programme. Offering a sukuk that relies on our sustainability performance is both a challenge and a golden opportunity for Yinson to demonstrate the serious action that we are taking to achieve our climate-related targets,” said Yinson’s Group Chief Strategy Officer Daniel Bong.

“HSBC Amanah is honoured to have played a key role in the establishment of Yinson’s Sukuk Wakalah Programme and to have advised on the formation of the client’s Sustainability Linked Financing Framework. Our partnership with Yinson reinforces our focus on supporting customers across industries in their transitions. Moreover, the high-quality investor demand and oversubscription of the sukuk highlights the strong interest of the investment community in a rapidly changing business environment. Importantly, this is also a reflection of our commitment to supporting the Malaysian government in the development of the sustainable finance landscape while achieving the country’s sustainability ambitions. HSBC Amanah itself is on a path towards growing assets in line with the Triple Bottom Line principles for the prosperity of people and the planet and our involvement in this Programme highlights part of the work that is being done to achieve this goal”, said Raja Amir Shah, CEO, HSBC Amanah.

HSBC Amanah is acting as the sole Principal Adviser, Lead Arranger, Lead Manager and Shariah Adviser for the Sukuk Wakalah Programme and Sustainability-Linked Structuring Agent for the Framework.

Zul Rafique & Partners is proud to be associated with such a historic transaction that supports the Malaysian government’s initiative and commitment in strengthening sustainable financing.

The transaction was also featured in The EDGE on 7 December 2021, HERE.

Please click here for the Bursa Malaysia Announcement.

For more insight into this area of law, please contact our Partners in the Banking and Finance practice group:
Loh Mei Mei
Kung Suan Im
Ashela Ramaya
Chan Kwan Hoe
Celine Rangithan

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