Parkson Credit launches RM1 billion Islamic Medium Term Notes Programme
Kuala Lumpur, 13 March 2025 - Parkson Credit Sdn Bhd (Parkson Credit) launched its inaugural asset-backed Islamic medium term notes programme (Sukuk Wakalah Programme) of RM1 billion, for which HSBC Amanah Malaysia Berhad (HSBC Amanah) acted as sole Principal Adviser, Lead Arranger, Lead Manager and Shariah Adviser. For the initial tranche of RM333.33 million Sukuk Wakalah issuance, HSBC Amanah was also the Senior Sukukholder for RM250 million.
The creation of this innovative financial tool consolidates hire-purchase debt obligations and offers another avenue of investment for investors in the Malaysian capital market. This development also broadens the pool of capital providers available to Parkson Credit.
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.
Lion Group’s 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.“
HSBC Malaysia’s CEO & Head of Banking, Dato’ Omar Siddiq said, “As Parkson Credit pursues growth, a scalable and adaptable financing solution becomes imperative for achieving its expansion goals. HSBC Amanah’s innovative financial product secures debt (Sukuk) issuance backed by Islamic hire purchase receivables, opening up a funding route for motorcycle hire purchase financing. Leveraging on our international structuring expertise, this deal demonstrates our ability to unlock a new source of capital and link clients to prime Islamic financing opportunities”.
Parkson Credit’s CEO, 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 Sukuk Wakalah Programme reaffirms Parkson Credit’s dedication to financial advancement and inclusion, establishing a new standard in innovative capital funding and paving the way for sustained development 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.
(From top left) Dato’ Omar Siddiq, CEO & Head of Banking, HSBC Malaysia and Tan Sri William Cheng, Executive Chairman, Lion Group, witnessing the signing between Christina Cheah, Managing Director, HSBC Malaysia (seated left) and Danny Poh, CEO, Parkson Credit to mark a collaboration between HSBC and Parkson Credit.
Media enquiries to:
HSBC Bank Malaysia
Rhia Sarah George rhia.sarah.george@hsbc.com.my
Established in late 2014, Parkson Credit began as a startup under the Lion Group and operates as a wholly-owned subsidiary of Parkson Retail Group Limited (PRGL). Now celebrating a significant 10-year milestone in the consumer financing industry, the company has remained committed to providing individuals with convenient and accessible financing solutions, enabling the purchase of motorcycles and other consumer goods through flexible installment schemes.
The company capitalizes on its extensive nationwide dealer network while strategically leveraging synergies with the Parkson department store chain. Its Shariah-compliant financing packages provide customers with seamless access to motorcycle purchases through a hire purchase scheme. With fast processing, innovative financial solutions, and customer-centric services, Parkson Credit continues to be a preferred choice among consumers.
About HSBC Malaysia
HSBC’s presence in Malaysia dates back to 1884 when the Hongkong and Shanghai Banking Corporation Limited established its first office in the country on the island of Penang, with the permission to issue currency notes. HSBC Bank Malaysia Berhad was locally incorporated in 1984 and is a wholly-owned subsidiary of The Hongkong and Shanghai Banking Corporation Limited, founding member of the HSBC Group. In 2007, HSBC Bank Malaysia Berhad was the first foreign bank to be awarded an Islamic banking subsidiary licence in Malaysia, and HSBC Amanah Malaysia Berhad was subsequently established. HSBC Malaysia offers a comprehensive range of banking and financial services including Islamic financial solutions. HSBC Malaysia has also led innovation in Malaysia by introducing Malaysia’s first ATM and Electronic Touch Banking in the early 1980s. Today, HSBC Malaysia has launched innovative solutions such as HSBCnet for secure banking for businesses, Trade Transaction Tracker and Facial Recognition on supported mobile phones.