KUALA LUMPUR (Oct 16):  Standard Chartered Saadiq Malaysia has inked its first sustainability-linked commodity murabahah structured financing with Sunway Treasury Sukuk Sdn Bhd, worth US$110 million (RM472 million).

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 ESG ambitions.

“The unique features of this facility are the use of structured rates and sustainability-linked features that correspond to environmental and social KPIs,” he said.

Meanwhile, Sunway Bhd (KL:SUNWAY) group chief financial officer Joyce Tan Wei Tze said the group remains steadfast in its sustainable development commitment.

“(We) hope to further strengthen (our) reputation as a responsible corporate citizen by participating actively in environmental, social, and governance (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 shariah 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 key performance indicators (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.

Standard Chartered had mobilised sustainable finance of US$105 billion from January 2021 to June 2024, against a US$300 billion commitment by 2030.

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