KUALA LUMPUR (April 3): AEON BiG (M) Sdn Bhd has secured a RM150 million Islamic financing facility from HSBC Amanah to support its general working capital purposes.

In a joint statement on Wednesday, AEON BiG said the financing is crucial to supporting day-to-day operations of the business in Malaysia, while fostering the development of its shariah compliant-focused activities that are a part of its core operations.

The retailer, which will be opening its newest store in Seremban on Friday, said the financing is crucial to facilitating its expansion plans.

AEON BiG, part of Japan's AEON Co Ltd, currently operates 21 hypermarkets in Malaysia.

The latest financing from HSBC Amanah is key to boosting AEON BiG’s operations in Malaysia.

HSBC said it had worked closely with AEON BiG in Malaysia and its parent company in Japan to facilitate the transaction.

AEON BiG managing director Sheikh Farouk Sheikh Mohamed said the partnership underscores the dedication to serving the community, while adhering to Islamic principles.

“With tailored funding solutions, we are poised to accelerate our growth trajectory, expansion and refurbishment plans, in order to deliver enhanced value to our customers, while staying true to our core beliefs”, he said.

Meanwhile, HSBC Malaysia head of global banking Christina Cheah said more and more clients are looking for flexible and scalable financial solutions to help them grow.

“The first Islamic financing for AEON BiG will support its growth in Malaysia, and free up working capital essential for the company’s operations, while also allowing it to focus on other strategic initiatives essential to enable it to achieve its ambition of redefining the country’s retail landscape.

HSBC Amanah chief executive officer Raja Amir Shah Azwa said the appetite for innovative Islamic financing solutions is growing among both domestic and international clients.

“Through the cross-border collaboration with the parent company, AEON Co in Japan, AEON BiG in Malaysia and HSBC’s offices in both Malaysia and Japan, the deal demonstrates how we are leveraging our international network to connect clients with key opportunities offered by Islamic financing," he said.