KUALA LUMPUR: MBSB Bank Bhd has signed an agreement with Maybank Investment Bank Bhd for the establishment of a RM5bil sustainability wakalah programme, the first of its kind to be issued by an Islamic bank.

       Maybank Investment Bank is the sole principal adviser, sole lead arranger, sole lead manager and sole sustainability structuring adviser while Maybank Islamic is the shariah adviser for the sustainability sukuk programme.

       In a statement, MBSB Bank said the sustainability sukuk, a financial instrument where the proceeds raised from the sukuk issuance are exclusively utilised for the purpose of funding eligible sustainability projects, is the bank's first sustainability sukuk platform.

       It will have a perpetual programme tenure and has been accorded a preliminary rating of A+IS by Malaysia Rating Corp Bhd.

       “This Sustainability Sukuk Programme is essential in placing MBSB Bank in the sustainability space and in line with the current banking industry theme.

       "It also allows the bank to continue to grow our sustainable generating assets including lending in the green projects, affordable housing, public health, education, SME financing and also the underserved segments," said MBSB acting CEO Datuk Nor Azam M Taib.

       “The Sustainability label attached to our sukuk offers diversification to investors as we acknowledge there is a growing demand of Sustainability Sukuk in the market and this enables the bank to have access to a larger pool of investors including those with dedicated ESG mandates," he added.

       Meanwhile, Maybank Investment Bank CEO Datuk Fad'l Mohamed said the transaction will create a multiplier effect when MBSB Bank supports its customers who are involved in eligible green and/or social projects.

       "We look forward to bringing more of our sustainability-first ideation, in line with our priority of advancing ESG in the financial and capital markets," he said.