(From left) Doshi, Sill, Murphy, Gan, Faroz and Yee Hin at the event.

PETALING JAYA: HSBC has introduced its first Social Loan Principles (SLPs) based financing in South East Asia for the real estate sector to Jayyid Land Sdn Bhd, a joint venture property development company between Platinum Victory and Jakel Group. 

This deal will finance the development of Phase 1 of the J Satine project in Setapak, Kuala Lumpur which comprises 2,068 units of affordable residential apartments under Residensi Wilayah Keluarga Malaysia. The housing program is under the purview of the Ministry of Federal Territories in collaboration with private sector developers to promote homeownership.

Amounting to RM136mil, HSBC’s inaugural social financing in Malaysia is granted to Jayyid Land by HSBC Amanah Malaysia Bhd and is aligned with the SLPs. The move is to improve socio-economic activities targeted to mitigate social issues and housing affordability, a challenge faced especially in city centres. 

The SLP is administered by the International Capital Markets Association and is aligned to the Social Bond Principles, one of the main internationally recognised voluntary issuance guidelines that promote transparency, disclosure and reporting in the social bond market.

“Residensi Wilayah Keluarga Malaysia targets first-time house buyers in Kuala Lumpur, mainly helping the B40 and M40 Group to own residential units in a safe and conducive environment with the benefit of purchasing at affordable pricing. This financing complements the government’s aim to build more affordable housing and promotes homeownership for all Malaysians,” said Platinum Victory Group managing director and Jayyid Land executive director Tan Sri Gan Yu Chai. 

“As an international bank with strong credentials in sustainability, HSBC understood our direction to increase our focus on environmental, social and governance and was able to collaborate and structure this SLP based financing for us – this is a remarkable milestone for Malaysia’s property sector that will create a positive impact for the community,” he said.

HSBC South and Southeast Asia commercial banking head Amanda Murphy said HSBC has earmarked RM1bil towards green and sustainable financing to enable businesses to embark on their sustainability journeys and switch to more sustainable ways of doing business. 

HSBC’s goal also runs parallel with the 12th Malaysia Plan on the government’s initiative to offer another 500,000 units of quality and affordable homes for Malaysians by 2025, thus creating an inclusive environment for the rakyat and businesses, she said. 

Murphy said the implementation of a ceiling price for affordable housing will help to control house prices and increase the potential of homeownership whilst improving the living standards of the urban low-medium income households.

Also present at the official signing ceremony were HSBC Corporate Malaysia head Karel Doshi, CMB Malaysia head Andrew Sill and Jayyid Land directors Datuk Seri Mohamed Faroz Mohamed Jakel and Gan Yee Hin.

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