Thursday 04, October 2018 by Kudakwashe

HSBC issues Sukuk tied to UN development goals

 

Proceeds from the senior unsecured Sukuk will be used to finance businesses and projects that fit the bank's sustainable development goals bond framework.

HSBC Amanah, the Malaysian Islamic banking arm of HSBC Holdings, $120.63 million) worth of Islamic bonds linked to the United Nations' sustainable development goals( SDGs).

The deal is the latest effort to combine the religious principles of Islamic finance with sustainable development themes promoted by the UN like eradicating poverty and financing clean energy.

The Islamic bonds are due in 2023 and priced at a fixed profit rate of 4.3 per cent. HSBC Amanah, RHB Islamic Bank Berhad and Maybank Investment Bank Berhad were joint lead managers for the transaction, reported Reuters.

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