KUALA LUMPUR (July 29): Pengurusan Air Selangor Sdn Bhd (Air Selangor) has priced the world's first blue sukuk, raising RM200 million to finance water infrastructure.

The 15-year sukuk, issued under Air Selangor's RM20 billion Islamic medium term notes programme, is also Malaysia's first blue bond/sukuk issuance, said Air Selangor in a joint statement with CIMB Investment Bank Bhd, the lead manager for the issuance.

Blue finance is an emerging sustainable finance segment that channels investment towards sustainable management, protection, restoration and efficient utilisation of water resources and water-related ecosystem.

“We recognise that building resilient water infrastructure requires long-term investment supported by sustainable financing," said Air Selangor chief executive officer (CEO) Adam Saffian Ghazali.

The blue sukuk is structured under Air Selangor's revised Sustainable Development Sukuk Kelestarian Framework Version 2.0.

The framework aligns with the International Capital Market Association's Green Bond Principles 2025, Social Bond Principles 2025 and Sustainability Bond Guidelines 2021, while integrating the International Finance Corporation's Guidelines for Blue Finance Version 2.0.

"We hope this landmark issuance will accelerate the adoption of blue finance across Malaysia and the region, supporting greater mobilisation of capital towards water security, environmental resilience and sustainable development,” said CIMB Investment Bank CEO Nor Masliza Sulaiman.