SunREIT plans sustainability-linked bond of up to MYR3 billion

In the first half of 2025, Malaysia's ESG bond market saw significant growth, with total issuance reaching RM7.93 billion, more than double the RM3.57 billion recorded in the same period of 2024 according to Cognitud. Among key participants, SunREIT Bond Bhd emerged as a notable contributor, securing RM520 million through sustainability-linked financing. This aligns with broader industry trends, as major infrastructure and real estate players increasingly adopt frameworks that tie capital raising to measurable environmental and social goals.

The Malaysian government remained the most active ESG bond issuer in the secondary market, with traded value rising to RM5.38 billion across 328 bond lines in 2025, up from RM2.93 billion in 2024 as reported by Cognitud. Other sectors, including utilities, healthcare, and logistics, also demonstrated growing engagement, with issuers such as TNB Power Generation, Air Selangor, and Global Vision Logistics participating in the expanding green finance ecosystem.

SunREIT's sustainability-linked bond issuance reflects a strategic shift toward aligning capital with corporate responsibility objectives. The transaction joins a broader RM3.9 billion in ESG financing secured by Malaysia Rail Link Sdn Bhd for the East Coast Rail Link project, underscoring infrastructure's role in driving sustainable development according to Cognitud. Analysts note that such initiatives reinforce Malaysia's commitment to integrating ESG principles into core economic activities while attracting a diversifying pool of responsible investors.

Malaysia's ESG Bond Issuance Doubles in 2025, Cognitud (March 13, 2026).