Unity Group, Tek Securities Unveil RMB200 Mln Climate Sukuk To Fund Selangor's Green Initiative
KUALA LUMPUR, Aug 22 (Bernama) -- Hong Kong-based green technology firm Unity Group Holdings International Ltd, in partnership with Labuan-based Tek Securities Ltd, has unveiled a RMB200 million climate sukuk from the Labuan International Business and Financial Centre (IBFC) to fund certified carbon credit projects under Selangor’s “Green Initiative Programme.”
The sukuk, touted as the world’s first climate-linked Islamic finance instrument, will be launched in the first week of October 2025, said Tek Securities director Datuk Dr Hng Paik San.
He said proceeds from the initial tranche will be channelled into the Selangor initiative, Unity’s first carbon credit-certified project under the Urban Well-Being Green Building Initiative to accelerate environmental, social and governance (ESG) adoption and achieve zero carbon by 2050.
Hng said the Selangor initiative is designed to generate two recurring revenue streams — energy savings of up to 75 per cent and carbon credit revenue certified under the verified carbon standard (VCS), which enables claims of up to 30 years.
Unity’s ultra-high-efficiency ESG lights, with a lifespan of 180,000 hours and a defect rate of only 0.01 per cent, are engineered to qualify for three carbon claim cycles, providing both long-term investor returns and measurable climate impact, he added.
Hng said the sukuk, denominated in renminbi, aligns with Asia’s broader de-dollarisation efforts while also reducing foreign exchange risks for issuers and investors.
“The climate sukuk is not just another instrument, it is a blueprint for accelerated decarbonisation.
“With our first certified carbon credit project in Selangor, we are proving that ESG investments can deliver dual revenue streams while creating real environmental impact,” he told reporters after the soft launch here today.
Unity Group chairman and chief executive officer Mansfield Wong said the issuance, structured as a private placement with three underwriters, primarily targets Chinese corporates with international operations in markets such as the Middle East, Singapore, Japan, South Korea and Iran.
He said the sukuk size of RMB200 million is relatively small compared to market demand, noting that industry players such as airlines and logistics firms require millions of tonnes of carbon credits annually to meet compliance obligations.
Wong added that the issuance is designed as a pilot programme, with larger sukuk offerings in the pipeline across Penang, Johor, Labuan, Lombok in Indonesia, Singapore, the Philippines and the Middle East.
For example, he said Selangor’s condominium sector alone could absorb between US$100 million and US$200 million worth of sukuk while an expansion to commercial, education and healthcare facilities could push issuance into the billions of US dollars.
-- BERNAMA