KUALA LUMPUR (March 13): Parkson Credit Sdn Bhd has tapped among others, its principal adviser HSBC Amanah Malaysia Sdn Bhd, for a RM1 billion sukuk wakalah programme to raise RM333 milion for its expansion plans.

In a joint statement on Thursday, the motorcycle financier said HSBC Amanah has taken up RM250 million of the first tranche of its RM333 million issuance of the asset-backed Islamic medium-term notes programme, as a senior sukuk holder.

The company said the sukuk programme helps simplify its debt from hire-purchase payments. Motorcycle financing makes up about 99% of Parkson Credit’s total sales.

The funds raised from the financial instrument is earmarked for Parkson Credit’s growth plans, especially in reaching new markets in suburban and rural areas across both Peninsular and East Malaysia.

Parkson Credit is also looking to offer new financing options to cater to the evolving needs of a broader customer base. 

HSBC Malaysia chief executive officer and head of banking Datuk Omar Siddiq said a scalable and adaptable financing solution is imperative for Parkson Credit to achieve its expansion goals.

“Leveraging on our international structuring expertise, this deal demonstrates our ability to unlock a new source of capital and link clients to prime Islamic financing opportunities,” he added.

HSBC Amanah also served as the lead arranger and manager as well as shariah adviser for the sukuk wakalah programme.