KUALA LUMPUR: Maybank Investment Bank Bhd (Maybank IB) expects the strong demand for sustainability bond and sukuk in the local market to continue this year.

       Chief executive officer Datuk Fad’l Mohamed said the domestic market recorded an issuance of RM8.4bil last year under the sustainable segment, constituting 7.6% of the total bond and sukuk issuances worth RM110bil registered in 2021.

       ‘’Sustainable issuance is set to increase given the intensifying focus on environmental, social, and governance (ESG) as well as climate commitment,’’ he told reporters after signing an agreement with MBSB Bank Bhd yesterday.

       ‘’The outlook has been very good in terms of issuances. We see a strong pipeline of close to RM3bil potentially coming into the market in the first half of 2022 under Maybank IB,’’ he added.

       Fad'l said the global sustainability bond issuance hit a record of more than US$1 trillion (US$1=RM4.18) last year, representing 10% of the global debt market in 2021.

       ‘’This data present opportunities for issuers to attract investors from around the world,” he said in a Bernama report.

       Maybank IB has been appointed as the sole principal adviser, sole lead arranger and manager, and sole sustainability structuring adviser for MBSB Bank’s RM5bil Sustainability Sukuk Wakalah Programme. It was also the joint lead manager for SME Bank’s RM500mil maiden sustainability sukuk programme issuance last year, among others.