KUALA LUMPUR – An expansion of the SRI-linked sukuk and Bond Grant Scheme was announced by the Securities Commission Malaysia (SC) to enable companies to raise sukuk that meet their sustainable finance needs.
In a recent statement, the SC said that the grant is now extended to include SRI-linked sukuk that the SC issued under its SRI-linked Sukuk Framework that was introduced in June of this year. SRI stands for Sustainable and Responsible Investing and is a term that is gaining momentum in the current
The regulator explained that this expansion would allow for the eligible sukuk issuers to apply for an offset of up to 90% of external review costs incurred, with each issuance capped at a maximum of RM300,000.
It said that the expansion plan is part of the SC’s Capital Market Masterplan 3’s priority which aims to enable finance transitions that supports the country’s aspirations to adopt a low-carbon and transition into a climate-resilient economy.
Furthermore, the SC stated that the expansion also aims to encourage corporations to issue more SRI-linked sukuk particularly those in the carbon-intensive industries as they shift towards better sustainability practices and low-carbon activities.
Established in 2018, the Grant, formerly known as the Green SRI Sukuk Grant Scheme, is applicable to sukuk issued under the SC’s SRI Sukuk Framework as well as bonds issued in accordance with the ASEAN Green, Social, and Sustainability Bond Standards.
With regards to the framework, the SC said that its key distinguishing feature is the requirement to have external reviews, at pre- and post-issuances. The regulator said these requirements will be essential when providing independent opinions and verification on the issuer’s sustainable objectives as well as alignment to the framework.
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