Hong Leong Bank has launched its first Green Additional Tier 1 Capital Securities amounting to RM900 million in nominal value, issued under HLB's existing multi-currency Basel-III compliant AT1 capital securities programme of up to RM10.0 billion in nominal value.
This inaugural issuance aims to raise funds for the purpose of financing or refinancing new or existing green assets, projects or companies that meet the eligibility criteria outlined in HLB's Green Bond Framework. The issuance of the Green Capital Securities also achieves the milestone of being the first issuance of a green AT1 bond by a bank in Malaysia.
Domenic Fuda, Group Managing Director and CEO of HLB, shared that the issuance of the Green Capital Securities is an important enabler in supporting the Bank's efforts to spur greater market adoption of sustainable growth through environmental, social and governance ("ESG") complying financing.
"This issuance cements our commitment to green financing and forms part of our sustainable funding strategy. With clear eligibility considerations outlined in the Framework, this is a significant step forward in increasing lending to businesses and individual customers that want to invest in eco-friendly initiatives.”
“We hope this can help unlock the financing needed for climate-friendly projects, while shaping and supporting Malaysia's transition to a greener and low-carbon economy," said Fuda.
The Green Capital Securities, which are perpetual and non-callable for 5 years, were priced at a spread of 72.2 basis points above the 5-year Malaysian Government Securities with a distribution rate of 4.45% p.a. for the first 5 years. The Green Capital Securities are rated A1 by RAM Rating Services Berhad.