Pengurusan Air Selangor Sdn Bhd has successfully priced the world’s first blue sukuk and Malaysia’s first blue bond/sukuk issuance, with a total nominal value of RM200 million.
The Blue SRI Sukuk Kelestarian carries a 15-year tenure and will be issued under Air Selangor’s RM20 billion Islamic medium-term notes programme.
In a joint statement, Air Selangor and CIMB Group Holdings Bhd said the landmark issuance marks a major milestone in the development of sustainable water financing within Malaysia’s capital market.
The companies said the issuance reflects Air Selangor’s commitment to securing sustainable financing for projects that deliver measurable environmental benefits, particularly in strengthening water infrastructure and supporting long-term resource management.
Air Selangor chief executive officer Adam Saffian Ghazali said building resilient water infrastructure requires long-term investment supported by innovative and sustainable financing solutions.
“This world’s first blue sukuk reflects our commitment to advancing innovative financing solutions that strengthen water security, protect natural resources and create long-term value for the communities we serve,” he said.
Meanwhile, CIMB Investment Bank chief executive officer Nor Masliza Sulaiman said the successful issuance highlights CIMB’s role as a capital markets arranger and sustainability partner.
“We hope this landmark issuance will accelerate the adoption of blue finance across Malaysia and the region, supporting greater mobilisation of capital towards water security, environmental resilience and sustainable development,” she said.
CIMB Investment Bank served as the sole sustainability structuring adviser and sole lead manager for the transaction.
The blue sukuk issuance represents a significant step forward in Malaysia’s sustainable finance landscape, creating a new avenue for funding projects focused on water security, environmental protection and long-term climate resilience.
