Key Takeaways & Executive Summary
Quick 60-second summary for financial decision makers
- ✓Air Selangor has priced the world's first Blue Sukuk, raising RM200 million for water security projects.
- ✓This landmark issuance expands sustainable Islamic finance options while addressing critical environmental challenges.
Landmark Blue Sukuk Sets New Standard in Islamic Finance
Pengurusan Air Selangor Sdn Bhd (Air Selangor) has achieved a global first in Islamic finance by successfully pricing the world's inaugural Blue Sukuk. The RM200 million issuance, structured as a 15-year instrument under the company's RM20 billion Islamic Medium-Term Notes Programme, represents a significant advancement in sustainable finance solutions.
Focusing on Water Security and Environmental Protection
The proceeds from this innovative Sukuk will exclusively fund projects that enhance water security, improve climate resilience, and protect aquatic ecosystems. This initiative directly supports United Nations Sustainable Development Goal 6 (Clean Water and Sanitation) while establishing a new benchmark for blue finance - a growing sector focused on water-related environmental projects.
Expanding Sustainable Finance Framework
Air Selangor issued the Sukuk under its enhanced Sustainable Development Sukuk Kelestarian Framework Version 2.0, which now includes eight eligible financing categories. The expanded framework encompasses blue, green, social and sustainability sukuk, covering projects ranging from sustainable water management to clean transportation initiatives.
The framework aligns with International Capital Market Association principles and incorporates International Finance Corporation's Blue Finance Guidelines. RAM Sustainability Sdn Bhd provided independent verification that the eligible projects meet IFC's stringent blue finance criteria.
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