Kuala Lumpur, 15 March 2025 - Parkson Credit launched its inaugural RM1 billion asset-backed Islamic Medium-Term Notes (MTN) Programme in November 2024. HSBC Amanah acted as sole Principal Adviser, Lead Arranger, Shariah Adviser, Lead Manager and sole Senior Sukuk holder for the first tranche of RM450 million asset-backed Sukuk Wakalah. This marks the first securitisation transaction for Parkson Credit, backed by Islamic motorcycle hire purchase receivables in Malaysia.

The creation of this innovative financial tool consolidates debt obligations and offers them to investors, providing a new avenue for investment in the Malaysian capital market.

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. In addition to geographical expansion, the company is also focused on introducing new, innovative financing products tailored to meet evolving consumer needs, further enhancing accessibility and convenience for customers.

“As Parkson Credit pursues growth, a scalable and adaptable financing solution becomes imperative for achieving its expansion goals. HSBC Amanah’s innovative financial product, a first in the country, secures debt (Sukuk) issuance through Islamic hire purchase receivables, opening up a funding route for motorcycle hire purchase financing. Leveraging on our international network, this deal demonstrates our ability to unlock a new source of capital and link clients to prime Islamic financing opportunities”, said Dato’ Omar Siddiq, CEO & Head of Banking, HSBC Malaysia.

Lion Group Executive Chairman, Tan Sri William Cheng 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 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."

CEO of Parkson Credit, Mr Danny Poh lauded the strong support of HSBC, "We highly value our longstanding partnership with HSBC, which has played a pivotal role in Parkson Credit’s growth since its inception in 2014. This collaboration has been instrumental in strengthening our position within the motorcycle financing sector and enhancing our ability to expand market reach and deliver innovative financing solutions to a broader customer base."

The successful launch of the Programme reaffirms Parkson Credit’s dedication to financial innovation and inclusion, paving the way for sustained growth in Malaysia’s consumer financing sector. Throughout its journey, HSBC has remained a trusted financial partner, supporting the company’s growth through various economic cycles.