Hong Leong Bank (HLB) and Hong Leong Islamic Bank (HLIB) have completed a socially sustainable securitisation exercise worth a total of RM300 million to the National Mortgage Corporation of Malaysia, Cagamas Bhd.

The transactions involved three-year socially sustainable securitisations of HLB and HLIB’s affordable home loans and financing worth RM200 million and RM100 million, respectively.

In statement today, the banking group said the affordable home financing assets are among its eligible socially sustainable assets that met the bank’s and Cagamas’ stringent Environmental, Social and Corporate Governance (ESG) criteria.

HLB group managing director and chief executive officer Domenic Fuda said there has been a growing demand from investors and customers for sustainable financial and investment products, including financing for affordable housing.

“This has led to this ESG-focused transaction, which is an initiative to promote and grow the ringgit bond market with high-quality socially sustainable bond/sukuk offerings.

“This will also attract investors with ESG mandates to deploy capital towards socially responsible investing in the country," he said.