KUALA LUMPUR: ISP Group has unveiled Malaysia's first sustainability industrial asset-backed securitisation (ABS) sukuk Wakalah valued at RM2 billion.
The pioneering initiative by the property development and investment company was lodged with the Securities Commission (SC) and marks a significant milestone in sustainable Islamic financing for the industrial property sector.
The programme, established through Visionary Heritage Bhd (VHB), aims to fund ISP's expansion in logistics warehouses and manufacturing hubs (LWMH) and purpose-built workers accommodation (PBWA) and supports community-focused initiatives and innovation in infrastructure and sustainability.
ISP Holding founder and group chief executive officer Eric Ng described the programme as a "transformative milestone," emphasising its role in promoting ethical financing and aligning with the company's strategic goals.
"This initiative allows us to connect with like-minded investors who share our vision of creating meaningful and lasting impact," he said.
The ABS sukuk offers flexibility with perpetual tenure, multi-currency options, and the potential for Asean green and sustainable sukuk issuances.
The first issuance, expected to be an Asean green sukuk Wakalah, will be backed by high-value industrial properties in Johor, valued at about RM110 million.
CIMB Investment Bank Bhd is the sole principal adviser, with CIMB Islamic Bank Bhd as the shariah adviser.
CIMB CEO of group wholesale banking Chu Kok Wei said the initiative reflects its shared commitment to driving the sustainability agenda while fostering innovation in Islamic finance.
"The structure exemplifies flexibility and sets a new industry benchmark."
The launch follows ISP's RM188.5 million acquisition of strategic industrial assets, further strengthening its 2.3 million square foot portfolio across Johor and Selangor.