RHB Banking Group is offering its Islamic Structured Investment Linked to Index for institutional investors, hence expanding its sustainability-related Shariah investment options for its clients.
Islamic SILX is a Shariah-compliant and principal-protected structured investment product primarily based on the Islamic concepts of Musawamah, Wa’d, Commodity Murabahah, and Wakalah that delivers principal protection and returns. This facility provides investors access to global multi-asset classes and investment strategies tied to the underlying performance of a reference index, with a maturity of between three to seven years. Through the product, institutional investors can benefit from portfolio diversification which includes proprietary multi-asset indices with Environmental, Social, and Governance considerations, foreign exchange, commodities, and other global indices, in addition to traditional cash assets such as equities and fixed income.
“We have witnessed a wider and more pronounced shift in the investing environment, particularly bringing into focus the various opportunities that lie within the convergence of Shariah and ESG investing. RHB’s Islamic SILX product framework allows us to quickly structure treasury solutions combining ESG and Shariah considerations to meet the needs of our more sophisticated clients.
Through RHB’s Islamic SILX, we are able to further invigorate conventional strategies and guide investors towards the most optimal risk-reward decisions by bringing together Shariah and ESG investing,” said Angus Salim Amran, Group Treasurer of RHB Banking Group.
The Group’s first Islamic SILX expands the wide variety of solutions offered including investment solutions as well as financial risk management solutions covering interest rate, foreign exchange, and commodities price risks. RHB’s Islamic SILX follows the Group’s structuring of Malaysia’s first ESG-linked Cross Currency Interest Rate Swap.