29 July 2026
Kuala Lumpur: Pengurusan Air Selangor Sdn Bhd (“Air Selangor”) has successfully priced the world’s first Blue Sukuk and Malaysia’s first Blue Bond/Sukuk issuance (“Blue SRI Sukuk Kelestarian” or “Blue Sukuk”) of RM200.0 million in nominal value to be issued pursuant to its RM20.0 billion Islamic Medium Term Notes Programme.
The landmark issuance, which has a 15-year tenor, represents a significant milestone in the evolution of sustainable water financing in the Malaysian capital market and reflects Air Selangor’s commitment to mobilising sustainable financing to support projects that deliver measurable environmental impact. CIMB Investment Bank Berhad (“CIMB”) acted as Sole Sustainability Structuring Adviser and Sole Lead Manager for the transaction, supporting Air Selangor in enhancing its Framework and facilitating the successful execution of the issuance.
Accordingly, the issuance supports blue finance — an emerging segment of sustainable finance that channels investment towards sustainable management, protection, restoration and efficient utilisation of water resources and water-related ecosystems, while supporting long-term water security, climate resilience, pollution prevention and environmental sustainability outcomes. This is also aligned with Air Selangor's commitment to the United Nations Sustainable Development Goals (SDGs), particularly SDG 6: Clean Water and Sanitation, through initiatives that promote sustainable water resource management and strengthen water security for the communities it serves.
Adam Saffian Ghazali, Chief Executive Officer of Air Selangor said “We recognise that building resilient water infrastructure requires long-term investment supported by sustainable financing. This world’s first Blue Sukuk reflects our commitment to advancing innovative financing solutions that strengthen water security, protect natural resources and create long-term value for the communities we serve.”
As both the world’s first Blue Sukuk issuance and Malaysia’s first Blue Bond/Sukuk issuance, it establishes an important precedent for blue labelled financing instruments in Malaysia’s debt capital market and demonstrates how sustainable financing can strengthen essential water infrastructure.
Nor Masliza Sulaiman, Chief Executive Officer of CIMB Investment Bank said, “CIMB is pleased to have played a key role in the successful issuance and to have advised Air Selangor on the enhancement of its Sustainable Development Sukuk Kelestarian Framework. This milestone demonstrates CIMB’s strength not only as a capital markets arranger, but as a trusted sustainability partner capable of delivering end-to-end advisory in innovative sustainable finance solutions. We hope this landmark issuance will accelerate the adoption of blue finance across Malaysia and the region, supporting greater mobilisation of capital towards water security, environmental resilience and sustainable development.”
The Blue Sukuk is structured under Air Selangor’s revised Sustainable Development Sukuk Kelestarian Framework Version 2.0 (“Framework”), reinforcing the company's long-term commitment to integrating sustainability into its financing strategy. The Framework aligns with the International Capital Market Association’s (ICMA) Green Bond Principles 2025, Social Bond Principles 2025 and Sustainability Bond Guidelines 2021, and integrates IFC’s Guidelines for Blue Finance Version 2.0. The Framework also includes expanded eligibility to support blue, green, social and sustainability Sukuk issuances under a single platform.
Key enhancements made to the Framework include the introduction of Blue Sukuk to finance sustainable water and wastewater management, resource protection and long-term water security. The Framework also expands the number of eligible project categories from four to eight, covering climate adaptation, energy efficiency, clean transportation and social initiatives.
To reinforce the credibility of the Framework, Air Selangor has secured a Preliminary Assessment letter from RAM Sustainability Sdn Bhd (“RAM Sustainability”), which outlines RAM Sustainability’s view that the Framework’s Eligible Blue Projects are eligible blue projects under IFC’s Guidelines for Blue Finance Version 2.0.
