KUALA LUMPUR: Hong Leong Bank (HLB) and Hong Leong Islamic Bank (HLIB) have completed a socially sustainable securitisation exercise worth RM300mil to Cagamas Bhd.

       In a statement Thursday, HLB said the transactions involved three years socially sustainable securitisations of RM200mil of HLB's and RM100mil of HLIB’s affordable home loans and financing respectively.

       The bank said these affordable home financing assets were among HLB’s eligible socially sustainable assets that met the bank’s and Cagamas’ stringent environmental, social and governance (ESG) criteria.

       Subsequently, it enabled Cagamas to conclude their first double issuance of the Asean sustainability SRI sukuk (SRI Sukuk) and the Asean sustainability bonds, under their RM60bil Islamic/conventional medium-term notes program.

       HLB group managing director and chief executive officer Domenic Fuda said there has been a growing demand from investors and customers for sustainable financial and investment products, including financing for affordable housing.

       “This has led to this ESG-focused transaction, which is an initiative to promote and grow the ringgit bond market with high-quality socially sustainable bond/sukuk offerings.

       “This will also attract investors with ESG mandates to deploy capital towards socially responsible investing in the country,” he said.