RAM Ratings rates world’s first SDG Sukuk by HSBC Amanah

KUALA LUMPUR: RAM Ratings (RAM) has rated the world’s first United Nations (UN) Sustainable Development Goals (SDG) sukuk issued by HSBC Amanah Malaysia Bhd (HSBC Amanah) under the bank’s RM3 billion MultiCurrency Sukuk Programme (2012/2032) which carries an AAA/stable rating.

“This global first by HSBC Amanah puts Malaysia again on the sustainable finance world map,” RAM chief executive officer Foo Su Yin highlighted.

The proceeds from this sukuk will be utilised for working capital in the ordinary course of HSBC Amanah’s Islamic banking business, to finance eligible businesses and projects in accordance with the HSBC SDG Bond Framework.

HSBC Amanah’s financial institution ratings stand at AAA/ Stable/P1, premised on the bank’s strategic role as the Islamic arm of HSBC Bank Malaysia Bhd (HSBC Bank Malaysia), rated AAA/ Stable/P1 by RAM, as well as its status as one of two global hubs of HSBC Holdings plc’s Amanah network.

HSBC Amanah is operationally integrated with HSBC Bank Malaysia and benefits from the HSBC Group’s solid global franchise, international network and expertise. RAM believed that the bank will continue to enjoy parental support when needed.

RAM is an active contributor to sustainability and green finance globally. On May 26, 2016, RAM joined the global line-up of six pioneer credit rating agency signatories to UN-supported Principles for Responsible Investment’s Statement on ESG in Credit Ratings.

In 2017, RAM rated the world’s first green sukuk issued by a solar power player, Tadau Energy Sdn Bhd.