KUALA LUMPUR, 1 August, 2026 (The Capital Post) – Pengurusan Air Selangor Sdn Bhd (Air Selangor) has successfully priced the world’s first Blue Sukuk and Malaysia’s first Blue Bond/Sukuk issuance worth RM200 million under its RM20 billion Islamic Medium Term Notes Programme, marking a major milestone in sustainable water financing.
The 15-year issuance is aimed at supporting projects that promote sustainable water management, environmental protection and long-term water security, while reinforcing Air Selangor’s commitment to sustainable financing and climate resilience.
The transaction was arranged by CIMB Investment Bank Berhad, which acted as Sole Sustainability Structuring Adviser and Sole Lead Manager, assisting Air Selangor in enhancing its Sustainable Development Sukuk Kelestarian Framework and executing the landmark issuance.
The Blue Sukuk supports the growing field of blue finance, which channels investments into the sustainable management, protection and restoration of water resources and related ecosystems. The initiative also aligns with the United Nations Sustainable Development Goals (SDGs), particularly SDG 6 on Clean Water and Sanitation.
Air Selangor Chief Executive Officer Adam Saffian Ghazali said the issuance reflects the company’s commitment to developing innovative financing solutions that strengthen water security, protect natural resources and create long-term value for communities.
“As the world’s first Blue Sukuk, this issuance demonstrates how sustainable financing can support resilient water infrastructure while setting a new benchmark for Malaysia’s capital market,” he said.
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Meanwhile, CIMB Investment Bank Chief Executive Officer Nor Masliza Sulaiman said the successful transaction highlights CIMB’s capability in delivering end-to-end sustainable finance advisory services.
She expressed hope that the issuance would accelerate the adoption of blue finance across Malaysia and the region, supporting greater investments in water security, environmental resilience and sustainable development.
Air Selangor’s revised Sustainable Development Sukuk Kelestarian Framework Version 2.0 aligns with the International Capital Market Association’s Green Bond Principles 2025, Social Bond Principles 2025 and Sustainability Bond Guidelines 2021, while incorporating the International Finance Corporation’s Guidelines for Blue Finance Version 2.0.
The updated framework expands eligible financing categories from four to eight, covering blue, green, social and sustainability projects, including climate adaptation, energy efficiency, clean transportation and social initiatives.
To strengthen the framework’s credibility, Air Selangor also obtained a Preliminary Assessment from RAM Sustainability Sdn Bhd, confirming that its eligible blue projects meet international blue finance guidelines. – The Capital Post
