To facilitate companies raising sukuk to meet their sustainable finance needs, SC (Securities Commission Malaysia) today announced the expansion of the Sustainable and Responsible Investment (SRI) Sukuk and Bond Grant Scheme (Grant).
The Grant is also now extended to SRI-linked sukuk issued under the SC’s SRI-linked Sukuk Framework (Framework) which was introduced in June 2022.
Subject to a maximum of RM300,000 per issuance, the expansion of the Grant will enable eligible SRI-linked sukuk issuers to apply to offset up to 90% of the external review costs incurred.
It is part of the Capital Market Masterplan 3’s priority to facilitate transition finance which supports Malaysia’s commitments and aspirations to transition to a low-carbon and climate-resilient economy with the aims to encourage the issuances of SRI-linked sukuk by corporates in carbon-intensive industries as they transition to better sustainability practices and low-carbon activities.
The Grant (formerly known as Green SRI Sukuk Grant Scheme), established in 2018, is also applicable to sukuk issued under the SC’s SRI Sukuk Framework and bonds issued under the ASEAN Green, Social and Sustainability Bond Standards.
The key distinguishing feature is the requirement to have external reviews, at pre- and post-issuances, as the SC believes these will be crucial in providing independent opinion and verification on the issuer’s sustainable objectives as well as alignment to the Framework.
As part of the SC’s efforts to promote SRI and transition finance, the SC and Capital Markets Malaysia today organised a workshop to equip capital market intermediaries with an understanding of the Framework’s requirement and to share best practices in SRI-linked sukuk issuances.
This workshop is part of the “NaviGate: Capital Market Green Financing Series”, the SC’s flagship programme established to create awareness of capital market funding avenues for sustainability. This is supported by the Joint Committee on Climate Change (JC3).
