Maybank Investment Bank Bhd (Maybank IB) expects the strong demand for sustainability bond and sukuk in the local market to continue this year.

Chief executive officer Datuk Fad’l Mohamed said the domestic market recorded an issuance of RM8.4 billion last year under the sustainable segment, constituting 7.6 per cent of the total bond and sukuk issuances worth RM110 billion registered in 2021. 

“Sustainable issuance is set to increase given the intensifying focus on environmental, social, and governance (ESG) as well as climate commitment,” he told reporters after signing an agreement with MBSB Bank Bhd here, today.

“The outlook has been very good in terms of issuances. We see a strong pipeline of close to RM3 billion potentially coming into the market in the first half of 2022 under Maybank IB,” he added.

Fad’l said the global sustainability bond issuance hit a record of more than US$1 trillion (RM4.18 trillion) last year, representing 10 per cent of the global debt market in 2021.

“This data present opportunities for issuers to attract investors from around the world,” he said.

Maybank IB has been appointed as the sole principal adviser, sole lead arranger and manager, and sole sustainability structuring adviser for MBSB Bank’s RM5 billion Sustainability Sukuk Wakalah Programme announced today.

It was also the joint lead manager for SME Bank’s RM500 million maiden Sustainability Sukuk programme issuance last year, among others.