HSBC unveils Malaysia's first ESG Islamic structured product

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KUALA LUMPUR (June 12): HSBC Amanah Malaysia Bhd has launched the first environmental, social and governance (ESG) Islamic structured product in the Malaysian market.

In a statement here today, the bank said the launch reflects the group’s aspiration in sustainable investment and is in line with Bank Negara Malaysia’s value-based intermediation initiative.

HSBC Bank Malaysia country head, retail banking and wealth management, Tara Latini, said ESG factors can be used to drive portfolio outperformance and investors should consider these factors when making investment decisions.

"In fact, here in Malaysia as well as worldwide, we see more asset owners embracing the notion that long-term sustainability needs to be embedded in their investment processes,” she said.

The ESG product, which is 100 percent principal protected if held to maturity, pays a fixed coupon of 3.90 percent per annum (three years tenor) and 4.50 percent per annum (four years tenor) in the first two years of the investment.

Payout at the end of third and fourth year is subject to Hang Seng Corporate Sustainability Index performance and subject to a cap of 5.90 percent and US dollar-ringgit adjustment.

The product is open for subscription by HSBC/ HSBC Amanah Premier customers from June 10 to June 21, 2019.