Hong kong: 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.’
According to BERNAMA News Agency, the sukuk is touted as the world’s first climate-linked Islamic finance instrument and is set to be launched in the first week of October 2025, stated Tek Securities director Datuk Dr Hng Paik San. He mentioned that the proceeds from the initial tranche will be directed towards the Selangor initiative, marking Unity’s first carbon credit-certified project under the Urban Well-Being Green Building Initiative. This initiative aims to accelerate environmental, social, and governance (ESG) adoption and achieve zero carbon by 2050.
Hng further explained that the Selangor initiative is designed to generate two recurring revenue streams: energy savings of up to 75 percent and carbon credit revenue certified under the verified carbon standard (VCS), which allows for claims of up to 30 years. Unity’s ultra-high-efficiency ESG lights, which boast a lifespan of 180,000 hours and a defect rate of only 0.01 percent, are engineered to qualify for three carbon claim cycles, offering both long-term investor returns and measurable climate impact.
He also noted that the sukuk, denominated in renminbi, aligns with Asia’s broader de-dollarisation efforts while reducing foreign exchange risks for both issuers and investors. Hng emphasized, “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.
Unity Group chairman and chief executive officer Mansfield Wong stated that the issuance, structured as a private placement with three underwriters, primarily targets Chinese corporates with international operations in regions like the Middle East, Singapore, Japan, South Korea, and Iran. Wong mentioned that the RMB200 million sukuk size is relatively small compared to market demand, highlighting 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 plans for larger sukuk offerings in the future across Penang, Johor, Labuan, Lombok in Indonesia, Singapore, the Philippines, and the Middle East. For instance, he indicated that Selangor’s condominium sector alone could absorb between US$100 million and US$200 million worth of sukuk, and an expansion to commercial, education, and healthcare facilities could push issuance into the billions of US dollars.