Cagamas Berhad, the National Mortgage Corporation of Malaysia, has issued the country’s inaugural Asean social sustainable and responsible investment ( SRI ) sukuk variable rate notes ( VRNs ) amounting to 200 million ringgit ( US$47.36 million ).

The issuance marks a significant milestone in the development of Malaysia’s sustainable finance landscape, as well as the integration of Islamic finance with innovative capital market solutions, the company says.

Proceeds of the Asean social SRI sukuk VRNs will be used to purchase affordable home financing that qualifies as eligible sustainability assets, supporting Malaysia’s social agenda of promoting inclusive and accessible home ownership.

Issued under the Cagamas’ sustainability bond and sukuk framework, the instrument offers an alternative funding solution that aligns with the company’s sustainability objectives, while expanding its pool of sustainable liquidity sources to meet the evolving needs of the financial industry.

“The successful launch of our inaugural Asean Social SRI Sukuk VRNs reflects our strong commitment to advancing financial innovation, Islamic finance, and sustainable capital markets,” says Cagamas president and chief executive officer Encik Kameel Abdul Halim.

“By integrating Islamic finance principles with social impact through variable-rate structuring, we offer investors a distinctive instrument that combines meaningful purpose with strong performance.”

As of the end of July 2025, the company has successfully raised 1.5 billion ringgit in sustainability-related instruments, supporting initiatives that foster social equity and responsible development – fully aligned with Malaysia’s national sustainability agenda.

Cagamas says it remains dedicated to strengthening the secondary mortgage market and advancing capital market development to ensure adequate and consistent provision of liquidity for primary home financing institutions.