March 16 – Hong Leong Investment Bank (HLIB) has introduced Malaysia’s first ESG Share Margin Financing solution, a groundbreaking initiative designed to support investors looking to invest in Environmental, Social, and Governance (ESG)-focused securities on Bursa Malaysia. This innovative financing solution aligns with the global shift towards sustainable investments, providing investors with an opportunity to integrate ESG principles into their portfolios while maximizing financial returns.
What is HLIB’s ESG Share Margin Financing?
HLIB’s ESG Share Margin Financing solution offers a structured financing option for investors who want to leverage their investments in FTSE4Good Bursa Malaysia (F4GBM) Index companies. The F4GBM Index consists of companies that meet globally recognized ESG standards, making it a reliable benchmark for sustainable investments.
Key features of this financing solution include:
- Up to 65% Financing – Investors can obtain margin financing of up to 65% of the market value of ESG-compliant securities listed on the F4GBM Index.
- Promotional Interest Rate – HLIB is offering a competitive interest rate of 4.95% for facilities starting from RM100,000, making sustainable investing more accessible to both new and existing customers.
Why is This Initiative Important?
The launch of this ESG Share Margin Financing solution marks a significant milestone in Malaysia’s financial landscape. It reflects the growing demand for sustainable investment options and the increasing awareness of ESG principles among investors.
According to Lee Jim Leng, Group Managing Director & CEO of HLIB, the global ESG market is expanding rapidly, with a projected compound annual growth rate (CAGR) of 18.8% from 2024 to 2030. She emphasized that this financing initiative is not just about profit but about supporting companies that prioritize sustainability while helping investors build long-term wealth.
This financing solution also aligns with Malaysia’s broader ESG goals, as the government and regulators continue to promote sustainable financial practices. It provides institutional and retail investors with a responsible investment vehicle that supports companies with strong ESG credentials.
How This Benefits Malaysian Investors
- Encourages Ethical Investing – Investors can allocate their funds toward companies that align with ESG principles, ensuring their capital supports socially responsible businesses.
- Higher Portfolio Diversification – ESG investing introduces new opportunities beyond traditional stocks, offering exposure to sustainable industries such as renewable energy, green technology, and ethical governance.
- Competitive Financing Options – With a low interest rate and high financing ratio, this solution makes sustainable investing more accessible, reducing financial barriers for investors.
HLIB’s Role in Promoting ESG Investments
As a leading investment bank in Malaysia, HLIB is committed to pioneering financial solutions that align with global sustainability standards. This ESG Share Margin Financing initiative represents a proactive approach in integrating responsible investing into the Malaysian financial ecosystem.
By supporting ESG-focused investments, HLIB is contributing to Malaysia’s vision of becoming a regional hub for sustainable finance. The bank aims to incentivize more investors to participate in ESG-driven investments, further solidifying the country’s position in the global green economy.
Conclusion
The launch of HLIB’s ESG Share Margin Financing solution is a game-changer for sustainable investing in Malaysia. It provides investors with a unique opportunity to engage in ESG investments while benefiting from attractive financing terms. As the ESG market continues to grow, initiatives like this will play a crucial role in shaping Malaysia’s financial future, ensuring that investments are both profitable and aligned with sustainability principles.
For more information, visit HLIB’s official website.
