Kevin Hans Jun Wei Samuel No Comments

Jayyid Land Sdn Bhd, a joint venture property development business between Platinum Victory and Jakel Group, has received the first Social Loan Principles (SLPs)-based financing in South East Asia for the real estate sector from HSBC.

This agreement will fund Phase 1 of the J Satine project in Setapak, Kuala Lumpur, which will have 2,068 affordable residential apartments under the Residensi Wilayah Keluarga Malaysia banner. The Ministry of Federal Territories is in charge of the housing initiative, which works with private developers to promote homeownership.

HSBC’s first social finance in Malaysia, worth RM136 million, was given to Jayyid Land by HSBC Amanah Malaysia Bhd and is aligned with the SLPs. The move is intended to boost socio-economic activities aimed at reducing social concerns and housing affordability, which is a problem that is particularly acute in urban areas.

The SLP is managed by the International Capital Markets Association and is aligned with the Social Bond Principles, one of the most widely accepted voluntary issuance criteria in the social bond market that promotes transparency, disclosure, and reporting.

Amanda Murphy, HSBC’s commercial banking head for South and Southeast Asia, said the bank has set aside RM1 billion for green and sustainable financing to help firms get started on their sustainability journeys and move to more sustainable methods of doing business.

HSBC’s ambition also aligns with the government’s 12th Malaysia Plan, which aims to provide further 500,000 excellent and affordable houses for Malaysians by 2025, creating a more inclusive environment for the rakyat and enterprises, she added.

According to Murphy, establishing a ceiling price for affordable housing will help to keep house prices in check and enhance homeownership opportunities while also enhancing the living standards of low- and middle-income households in cities.

 

To read more, please scroll further:

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 Dosh, CIMB Malaysia head Andrew Sill and Jayyid Land directors Datuk Seri Mohamed Faroz Mohamed Jakel and Gan Yee Hin.

Source: Star Property

Leave a Reply

Your email address will not be published.