KUALA LUMPUR: Parkson Credit Sdn Bhd launched its inaugural asset-backed Islamic medium term notes (MTN) programme (Sukuk Wakalah Programme) of RM1 billion, for which HSBC Amanah Malaysia Bhd acted as sole principal adviser, lead arranger, lead manager and shariah adviser.
For the initial tranche of RM333.33 million Sukuk Wakalah issuance, HSBC Amanah was also the senior sukuk holder for RM250 million.
In a statement yesterday, Parkson Credit said the creation of this innovative financial tool consolidates hire-purchase debt obligations and offers another avenue of investment for investors in the Malaysian capital market. This development also broadens the pool of capital providers available to Parkson Credit.
Parkson Credit’s primary focus remains on motorcycle financing, representing about 99% of the company’s total sales. The strategic funding provided by HSBC will bolster Parkson Credit’s expansion initiatives and enable the company to broaden its reach into emerging and underserved markets, particularly in suburban and outskirt areas across both Peninsular and East Malaysia.
The company is also focused on introducing new, innovative financing products tailored to meet evolving consumer needs.
Lion Group executive chairman Tan Sri William Cheng said: “This marks a new chapter for the Lion Group, reflecting our commitment to innovation, resilience, and excellence in advancing Malaysia’s economic progress. As a forward-looking diversified business group, we remain steadfast in our vision to contribute to nation-building while seizing opportunities that shape the future of industries and communities alike.”
HSBC Malaysia CEO and banking head Datuk Omar Siddiq said, “As Parkson Credit pursues growth, a scalable and adaptable financing solution becomes imperative for achieving its expansion goals. HSBC Amanah’s innovative financial product facilitates debt (sukuk) issuance backed by Islamic hire purchase receivables, creating a new funding avenue for motorcycle hire purchase financing. Leveraging on our international structuring expertise, this deal demonstrates our ability to unlock a new source of capital and link clients to prime Islamic financing opportunities”.
Parkson Credit CEO Danny Poh said this collaboration has been instrumental in strengthening the company’s position within the motorcycle financing sector and enhancing their ability to expand market reach and deliver innovative financing solutions to a broader customer base.
