CIMB Islamic has stepped up its action in support of the United Nations Sustainable Development Goals (SDGs) with the
introduction of its first Sustainable Term Investment Account-i (Sustainable TIA-i) Tranche.
Sustainable TIA-i is a purpose-driven investment offering for businesses including small and medium enterprises (SME) and its placements will be invested into eligible Shariah-compliant sustainable financing assets.
Its primary focus will be on financing assets linked to SDG 8 which promotes Decent Work and Economic Growth, with particular emphasis on assets that are aligned to micro, small and medium enterprises (MSME) as defined by Bank Negara Malaysia (BNM). These assets include the financing of activities that contribute to sustainable job creation, economic growth and societal wellbeing, as well as activities that contribute to expanded access to affordable and responsible financial products and services to vulnerable segments in the start-up and MSME sectors.
The Sustainable TIA-i Tranche is being offered from now until 16 November 2022. The minimum placement is as low as RM10,000 and up to RM20 million per transaction, for a tenure of 6 or 12 months at competitive profit rates (indicative) of 3.10% or 3.45% per annum respectively.
The Shariah-compliant fund also provides flexibility for customers who require any early upliftment prior to maturity, where a 50% partial payout of the accrued profit will be provided. With low to moderate risk assets under CIMB Islamic’s financing asset portfolio.
“The introduction of our Sustainable TIA-i Tranche marks the latest milestone in our continued commitment as a financial intermediary to drive positive impacts among vulnerable segments and the community. As an investment offering that aligns profit with purpose, we believe it is firmly in line with the principles of value-based intermediation as it will contribute towards the long-term sustainability of MSMEs, the lifeblood of our economies. Together with our clients, we look forward to continue playing our part in supporting the SDGs by providing inclusive financial services aligned to the sustainability agenda under our Forward23+ strategic plan,” Ahmad Shahriman Mohd Shariff, Chief Executive Officer of CIMB Islamic said.
CIMB Group has already mobilised RM30 billion, collectively, in sustainable finance under its Green, Social, Sustainable Impact Products and Services (GSSIPS) Framework, achieving its target two years ahead of plan. The Group has also committed to achieving Net Zero greenhouse gas (GHG) emissions, including Scope 3 financed emissions, by 2050.
In addition to its sustainable finance initiatives, CIMB Group will also be hosting its flagship The Cooler Earth Sustainability Summit from 20 to 24 September 2022 in hybrid format at Mandarin Oriental, Kuala Lumpur, which will also be broadcast online.
Whilst the 2022 Summit themed ‘Facilitating a Just Transition’ seeks to reflect on the accelerating global action on climate following COP26 in Glasgow whilst ensuring that climate solutions and social development blueprints are inclusive, equitable and just for all stakeholders.
