The deal marks HSBC Amanah’s efforts to integrate the religious principles of Islamic finance with the U.N’s sustainable development goals.

The Malaysian Islamic banking arm of HSBC Holdings, HSBC Amanah, stated it has raised $120.63 million (500 million ringgit) worth of Islamic bonds linked to the United Nations’ sustainable development goals.

The development marks its latest efforts to integrate the religious principles of Islamic finance with the sustainable development goals, which includes reducing and eradification of poverty and financing clean, renewable energy projects.

Earlier this week, Malaysia’s central bank had issued guidelines encouraging Islamic banks to become more involved in social and environmental themed activities.

Proceeds from the sukuk, also known as senior unsecured Islamic bonds, will be used to finance businesses and projects that fit the bank’s sustainable development goals bond framework, said HSBC Amanah.

The sukuk are due in 2023 and priced at a fixed profit rate of 4.3 percent, which the lender said was the lowest coupon for a five-year non-government guaranteed bond issuance in the Malaysian market this year.

The deal attracted orders of 1.4 billion ringgit, with bids from 25 accounts primarily from government agencies, pension funds and financial institutions.

HSBC Amanah, RHB Islamic Bank Berhad and Maybank Investment Bank Berhad acted as joint lead managers for the transaction.

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