Syariah-compliant growth for retail chain

(From left) AEON BiG head of marketing Nazwan Effendy Choong, Sheikh Farouk, Cheah, Raja Amir and HSBC Malaysia global banking head of multinationals Shreyas Krishna at the signing ceremony, marking a collaboration between AEON BiG and HSBC Amanah to execute AEON BiG’s first Islamic financing facility.

AEON BiG (M) Sdn Bhd and HSBC Amanah have partnered to create AEON BiG’s first Islamic financing facility.

The RM150mil transaction would be used to support AEON BiG’s general working capital purposes, that are vital for daily business operations in Malaysia.

This would also foster the development of its syariah-compliant focused activities that are a part of its core operations.

The financing would enable the retailer’s expansion plans, which included the opening of its newest store in Seremban on April 5.

AEON BiG, which is part of AEON Co Ltd (Japan), currently operates 21 hypermarkets in Malaysia.

“We are thrilled to announce our partnership with HSBC Amanah and we are immensely proud to align our growth strategy with our values.

“This partnership underscores our dedication to serving our community while adhering to Islamic principles.

“With tailored funding solutions, we’re poised to accelerate our growth trajectory, expansion and refurbishment plans in order to deliver enhanced value to our customers while staying true to our core beliefs,” said AEON BiG managing director Sheikh Farouk Sheikh Mohamed.

“More and more clients are looking for flexible and scalable financial solutions to help them grow.

“The first Islamic financing for AEON BiG will support its growth in Malaysia and free up working capital essential for the company’s operations while also allowing it to focus on other strategic initiatives essential to enable it to achieve its ambition of redefining the country’s retail landscape,” said HSBC Malaysia head of global banking Christina Cheah.

“The appetite for innovative Islamic financing solutions is growing amongst both domestic and international clients.

“Through the cross-border collaboration with the parent company; AEON Co in Japan, AEON BiG in Malaysia and HSBC’s offices in both Malaysia and Japan, the deal demonstrates how we are leveraging our international network to connect clients with key opportunities offered by Islamic financing,” said HSBC Amanah chief executive officer Raja Amir Shah.

Source: thestar.com.my