Jayyid Land Sdn Bhd has received RM136 million in financing from HSBC Amanah Malaysia Bhd for Phase One of the J.Satine project in Setapak, Kuala Lumpur.
This is the banking group's first social financing in Malaysia, as well as its first SLP-based financing in Southeast Asia for the real estate sector.
According to HSBC Malaysia, the financing aims to improve socioeconomic activities aimed at mitigating social issues and housing affordability, a challenge faced particularly in city centres.
The SLP is administered by the International Capital Markets Association and is aligned with the Social Bond Principles, one of the most important internationally recognised voluntary issuance guidelines that promote transparency, disclosure, and reporting in the social bond market, according to a statement issued today.
HSBC South and Southeast Asia head of commercial banking Amanda Murphy said the social loan would help deliver economic opportunities and social benefits to the local community.
"In Malaysia, we have earmarked RM1 billion towards green and sustainable financing to enable businesses to embark on their sustainability journeys and switch to more sustainable ways of doing business," she said.
Jayyid Land is a joint venture between Platinum Victory and Jakel Group.
J.Satine is a project with a gross development value of RM1.25 billion.
It is an integrated development with 4,303 residential and commercial units. There are 3,600 affordable apartment units, 661 SoHo (small office home office), and 42 commercial lots.
Phase 1 includes 2,068 affordable apartment units.
J.Satine falls under the purview of Residensi Wilayah Keluarga Malaysia, a housing programme run by the Federal Territories Ministry in collaboration with private sector developers to encourage homeownership.
Tan Sri Gan Yu Chai, managing director of Platinum Victory Group and executive director of Jayyid Land, said that the financing complements the government's goal of constructing more affordable housing and encouraging homeownership for all Malaysians.