Pengurusan Air Selangor Sdn Bhd (Air Selangor) has successfully priced the world’s first Blue Sukuk, raising RM200 million through a landmark issuance that marks a major milestone in sustainable Islamic finance. The 15-year Sukuk was issued under the company’s RM20 billion Islamic Medium-Term Notes (IMTN) Programme and is also recognised as Malaysia’s first Blue Bond/Sukuk issuance.
The Blue Sukuk is designed to finance projects that strengthen long-term water security, improve climate resilience, prevent pollution and promote environmental sustainability. The initiative supports the development of blue finance, an emerging segment of sustainable finance focused on the protection and efficient management of water resources and related ecosystems. It also aligns with the United Nations Sustainable Development Goal (SDG) 6 on clean water and sanitation.
Air Selangor Chief Executive Officer Adam Saffian Ghazali said the issuance demonstrates the company’s commitment to adopting innovative financing solutions to develop resilient water infrastructure. He noted that sustainable financing plays a crucial role in strengthening water security, protecting natural resources and creating long-term value for communities.
CIMB Investment Bank Bhd acted as the sole Sustainability Structuring Adviser and Sole Lead Manager for the transaction. Chief Executive Officer Nor Masliza Sulaiman said the successful issuance highlights the bank’s expertise in sustainable finance and is expected to accelerate the adoption of blue finance across Malaysia and the wider region.
The Sukuk was issued under Air Selangor’s revised Sustainable Development Sukuk Kelestarian Framework Version 2.0, which expands the eligible financing categories from four to eight. The framework now covers blue, green, social and sustainability sukuk, including projects related to sustainable water and wastewater management, climate adaptation, energy efficiency, clean transportation and social initiatives.
The framework is aligned with the relevant International Capital Market Association (ICMA) principles and incorporates the International Finance Corporation (IFC) Guidelines for Blue Finance Version 2.0. Air Selangor also obtained a preliminary assessment from RAM Sustainability Sdn Bhd, confirming that the eligible blue projects under the framework comply with the IFC’s Blue Finance Guidelines.