Parkson Credit Launches RM1 Billion Sukuk Wakalah with HSBC Amanah
Parkson Credit Sdn Bhd has launched its inaugural RM1 billion asset-backed Islamic medium-term notes programme (Sukuk Wakalah Programme), with HSBC Amanah Malaysia Berhad acting as the sole Principal Adviser, Lead Arranger, Lead Manager, and Shariah Adviser. For the initial tranche of RM333.33 million in Sukuk Wakalah issuance, HSBC Amanah also served as the Senior Sukukholder for RM250 million.
This innovative financial instrument consolidates hire-purchase debt obligations while offering investors a new avenue for participation in the Malaysian capital market. Additionally, it expands Parkson Credit’s access to a broader pool of capital providers, strengthening its financial position.
Parkson Credit’s core business remains focused on motorcycle financing, which accounts for approximately 99% of its total sales. The strategic funding facilitated by HSBC Amanah will support the company’s expansion into emerging and underserved markets, particularly in suburban and rural areas across both Peninsular and East Malaysia.
Beyond geographical growth, Parkson Credit is also committed to introducing innovative financing solutions tailored to evolving consumer needs, enhancing accessibility and convenience for its customers.
Tan Sri William Cheng, Executive Chairman of Lion Group, highlighted the broader impact of this collaboration: “This marks a new chapter for the Lion Group, reflecting our commitment to innovation, resilience, and excellence in driving Malaysia’s economic progress.
“As a forward-thinking diversified business group, we remain dedicated to nation-building while seizing opportunities that shape the future of industries and communities alike.”
Dato’ Omar Siddiq, CEO & Head of Banking at HSBC Malaysia, emphasised the significance of this financing solution: “As Parkson Credit continues to pursue growth, a scalable and adaptable financing solution is crucial to achieving its expansion goals.
“HSBC Amanah’s innovative Sukuk Wakalah programme secures debt issuance backed by Islamic hire-purchase receivables, providing a robust funding route for motorcycle hire purchase financing. Leveraging our international structuring expertise, this deal highlights our ability to unlock new sources of capital and connect clients to premier Islamic financing opportunities.”
Danny Poh, CEO of Parkson Credit, expressed appreciation for HSBC’s continued support: “We highly value our longstanding partnership with HSBC, which has been instrumental in Parkson Credit’s growth since its inception in 2014.
“This collaboration has strengthened our position within the motorcycle financing sector, enabling us to expand our market reach and deliver innovative financing solutions to a broader customer base.”
The successful launch of the Sukuk Wakalah Programme reaffirms Parkson Credit’s commitment to financial innovation and inclusion, setting a new benchmark in capital funding and paving the way for sustained growth in Malaysia’s consumer financing sector. Throughout its journey, HSBC has remained a trusted financial partner, supporting Parkson Credit’s expansion across various economic cycles.
