HSBC Amanah Malaysia has launched its first Islamic Green Trade Finance proposition with a green bank guarantee for Cenergi, a project development, investment and operation company specialising in renewable energy and energy efficiency projects in Malaysia and Southeast Asia.

According to HSBC Amanah, the proposition includes Islamic trade finance products, including shariah-compliant letters of credit (L/Cs), bank guarantees and clean import financing.

ESG priorities

Cenergi, a subsidiary of the Malaysian government's strategic investment fund,

Khazanah Nasional, is actively growing its investment portfolio in various renewable energy sources in line with its strategic priorities to integrate ESG (Environmental, Social and Governance) across its investment and operational activities.

HSBC Malaysia chief executive officer Stuart Miln said the bank's green trade finance proposition could help Cenergi facilitate the integration of sustainable products and solutions into its business operations to enable long-term growth and, more importantly, reduce climate impact.

Sustainable growth

Miln said there is a growing appetite for sustainable and green-focused offerings in the market, and the bank is pleased to have launched its green trade finance proposition with Cenergi.

"HSBC Amanah is committed to transforming into HSBC Group's first sustainable bank that offers industry-leading sustainable product offerings," according to Miln.

HSBC has been offering Islamic financial services in Malaysia since August 2006 through its Islamic banking subsidiary HSBC Amanah.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.