CAGAMAS PLANS TO ISSUE GREEN BONDS TO FUND GREEN HOUSING

KUALA LUMPUR, Sept 21 (Bernama) -- Cagamas Bhd is planning to issue green bonds/sukuk to fund stakeholders to develop and finance green housing target at female-headed households.

With nearly 40 per cent of global carbon dioxide emissions coming from the real estate sector, Cagamas and the Asian Development Bank inked a technical assistance agreement today to identify challenges to scale up green residential mortgages in Malaysia for the affordable housing segment and housing in smaller towns, Cagamas said in a statement today.

The agreement was signed at the Cagamas-organised “Developing and Financing Green Housing in Asia” conference.

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Cagamas president/chief executive officer Datuk Chung Chee Leong said the national mortgage corporation wants to ensure that affordable green housing is accessible to lower income house buyers, while reducing the overall environmental footprint of the housing sector.

Chung said Cagamas aims to complete the study within a year. The findings will provide the information how the green mortgage market can be expanded to include B40, M40 and female-headed households.

He said the knowlege generated from the study can help with the issuance of green bonds/sukuk.

Cagamas has issued cumulatively RM1.70 billion worth of sustainability-related bonds and sukuk to-date.

Proceeds were allocated in accordance with its sustainability bond/sukuk framework, which is aligned with internationally recognised market principles, standards and best practices to support the growth of Malaysia’s social and green finance market.  

Concluding the one-day conference, Chung said Cagamas has embarked on the building blocks to ensure adequate supply of green-certified houses.

“There will be provision for more mortgages and green bonds and sukuk,” he said in his closing remarks.

The conference brought together participants from across Asia, including investors, financial regulators, policy makers, developers and representatives from corporations. It also provided a platform for public and private sectors to exchange views, discuss current initiatives and priorities to strengthen the capacity to develop and finance the green housing agenda.

-- BERNAMA