KUALA LUMPUR (Aug 13): Paramount Corporation Bhd (KL:PARAMON) on Tuesday issued its first sustainability-linked sukuk wakalah with a nominal value of RM100 million.

AmBank Islamic is the sole subscriber, according to a statement. The sukuk was issued out of Paramount’s unrated Islamic medium-term notes programme of up to RM1 billion based on the shariah principle of Wakalah Bi-Al Istithmar.

"The issuance is a significant milestone in Paramount’s journey towards fulfilling our sustainable development agenda as well as a commitment to a future where business intertwines seamlessly with environmental stewardship and social responsibility,” said Deputy Group CEO Benjamin Teo.

Under its sustainability-linked financing framework, Paramount has set targets for green building certification, CIDB Malaysia’s Safety and Health Assessment System in Construction certification, and the reduction of greenhouse gas emissions intensity.

“By linking this sukuk wakalah to specific sustainability targets, we are taking a bold step forward by ensuring that our financial activities support our business goals while contributing positively to environmental and social objectives,” Teo said.

For AmBank Islamic, the participation in the sustainability-linked sukuk wakalah reflects “our steadfast dedication to ESG values,” said Jamzidi Khalid, its managing director of wholesale banking. “This initiative is integral to AmBank Group’s comprehensive sustainability agenda.”

AmInvestment Bank was the sole principal adviser, lead arranger, lead manager, facility agent and sustainability structuring adviser, while AmBank Islamic acted as the sole shariah adviser for the sukuk wakalah programme.

Uploaded by Lam Seng Fatt