Hong Leong Investment Bank Bhd (HLIB) has launched a dedicated ESG share margin financing product, claiming to be the first Malaysian investment bank to offer such a facility for ESG-focused securities listed on Bursa Malaysia.
The product enables investors to allocate up to 65 per cent of their margin in companies included in the FTSE4Good Bursa Malaysia (F4GBM) index. To encourage participation, HLIB is offering a promotional interest rate of 4.95 per cent with a minimum financing facility of RM100,000.
HLIB stated that the initiative reflects its commitment to promoting ESG investment, aiming to foster a financial environment where profitability aligns with sustainability goals.
HLIB Group Managing Director and Chief Executive Officer Lee Jim Leng highlighted the increasing prominence of the green economy, noting that investor interest in ESG-focused investments is on the rise.
“The rapid expansion of the green economy is driving greater interest in ESG investments. A Grand View Research report projects an 18.8 per cent compound annual growth rate for the global ESG market from 2024 to 2030,” Lee said.
“Our ESG margin financing provides investors with an opportunity to participate in this growth while supporting sustainable companies and aligning their portfolios with environmental, social, and governance values,” he added.
In addition to the ESG initiative, HLIB has recently upgraded its futures trading platform, HLeFutures. The platform aims to enhance the trading experience for both experienced traders and those new to futures trading, offering a more seamless and comprehensive approach to portfolio diversification and risk management.
Lee stated that the upgraded platform is designed to encourage more Malaysians to begin investing through an accessible digital platform with global market connectivity.