The Securities Commission Malaysia (‘
SC’) announced on 23 August 2022 that it has expanded the Sustainable and Responsible Investment (SRI) Sukuk and Bond Grant Scheme
1 (‘
Grant’) to companies issuing sukuk under the SC’s Sustainable and Responsible Investment linked (SRI-linked) Sukuk Framework
2 (‘
SRI-linked Sukuk Framework’).
The Grant was originally available only to eligible issuers of sukuk under the SC’s SRI Sukuk Framework
3 and bonds under the ASEAN Green Bond Standards, ASEAN Social Bond Standards or Sustainability Bond Standards
4. With this expansion, eligible issuers of SRI-linked sukuk under the SRI-linked Sukuk Framework will be eligible to apply to offset up to 90% of the external review costs incurred, subject to a maximum of RM300,000 per issuance. The expansion aims to encourage and facilitate transition finance by corporates in carbon intensive industries.
To read our write-up on the SRI-linked Sukuk Framework, please click
here.
Alert by Sharifah Shafika Alsagoff (Partner) and Hafidah Aman Hashim (Partner) of the Islamic Finance Practice of Skrine.
1 The Grant of RM6.0 million was established in 2018 as the Green SRI Sukuk Grant Scheme.
2 The SRI-linked Sukuk Framework was launched by the SC on 30 June 2022. Further details of the requirements for the SRI-linked sukuk are set out in Chapter 9 of Part 3 of the Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework (‘
LOLA Guidelines”) and Chapter 23 of the Guidelines on Issuance of Corporate Bonds and Sukuk to Retail Investors.
3 Refer to Chapter 7 of the LOLA Guidelines for further details of the SC’s SRI Sukuk Framework.
4 Refer to Chapter 8 of the LOLA Guidelines for further details of the ASEAN Green, Social and Sustainability Bonds.