Sustainable AND Responsible
Investment Center

Overview

The world is changing across all fronts, necessitating transformational thinking and attitudes to adapt and then to grow. The same transformation is happening around us in the capital market, with more and more issuers and investors are seeking to make an impact with their investments, by exploring Sustainable and Responsible Investment (SRI).

Today, SRI have transformed from niche products into mainstream capital market offerings, as more discerning investors shift towards climate friendly activities, to minimise their impact on the planet. In fact, the capital market plays a critical role in providing funding to drive SRI.

In realising the world’s sustainable development needs, a significant amount of funding is required. Based on estimates by the United Nations Conference on Trade and Development (UNCTAD), to achieve the global Sustainable Development Goals (SDGs), the world would need total investment of between US$5.0 trillion and US$7.0 trillion (RM17.5 trillion and RM24.5 trillion) per annum until 2030.

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Articles & Tutorials

Green Sukuk Roundtable Discussion

Dec 01, 2020

Bonds & Loans and Capital Markets Malaysia recently conducted a Green Sukuk Roundtable, bringing together a distinguished group of thought leaders from across the world to debate the state and evolution of ESG-linked Sukuk globally and Malaysia’s role in internationalising the...

Malaysia Bond and Sukuk : Quarterly Report 3Q2020

Nov 23, 2020

As economy reopened since May after three-month of movement restriction, the 3Q20 GDP improved with smaller contraction by 2.7% compared to 2Q20 with 17.2% contraction. The unemployment rate also improved from 4.9% in June to 4.6% in September. Overall MGS and GII declined in September due to...

The Revolution of Trading and Brokerage with Islamic Finance

Nov 17, 2020

The use of Islamic finance in the trading of financial instruments has been a very hot debate for years by Shariah scholars. According to Islamic finance principles, money itself cannot be used to generate profit which means those involved in Islamic finance cannot lend or earn money primarily to...

Malaysia’s Domestic Bond Market : A Success Story

Oct 16, 2020

Many emerging markets and developing economies (EMDEs) face challenges in developing a vibrant domestic bond market. Only a few have developed such markets to a level of full maturity as Malaysia has. Although the overall size of most domestic corporate bond markets in EMDEs (in terms of...

Developing a National Green Taxonomy : A World Bank Guide

Oct 16, 2020

In recent decades, the challenges of a rapidly warming planet and other aspects of environmental degradation have motivated a call for all actors in society, including the financial sector, to take responsibility for environmental sustainability. The funding will have to come from both the public...

Pioneering the Green Sukuk : Three Years On

Oct 16, 2020

This note is a stocktaking of the first three years of the green sukuk. Given the small sample size and limited data, the analysis is limited in scope. It covers the basics of what makes a green sukuk, a brief history of the developmental work leading to the first green sukuk, followed by an...

Malaysia : Islamic Finance and Financial Inclusion

Oct 16, 2020

The main purpose of this report is to explore the role Islamic finance has played in furthering financial inclusion in Malaysia, with a view to drawing key lessons of experience. Given Malaysia’s success in the development of Islamic finance, these lessons will be useful to policy makers...

Leveraging Islamic Fintech to Improve Financial Inclusion

Oct 16, 2020

Islamic finance is a fast-booming segment of global finance. Serving a core population of 1.8 billion Muslims world-wide and a wider global ethical finance audience, its role is growing in global significance especially as it relates to global social financing needs. The global fintech revolution...

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Announcements

SIME DARBY PROPERTY BERHAD

Dec 01, 2020

On behalf of Sime Darby Property Berhad, we attached herewith the Pricing Supplement dated 30 November 2020 in relation to the issuances of RM150.0 million of ASEAN Sustainability SRI Sukuk Musharakah (Tranche 1), RM500.0 million of Sukuk Musharakah (Tranche 2) and RM150.0 million of Sukuk...

EDRA SOLAR SDN BHD

Nov 04, 2020

RAM Ratings has reaffirmed the AA2/Stable rating of Edra Solar Sdn Bhd's (Edra Solar or the Company) RM245 mil ASEAN Sustainability SRI Sukuk (the Sukuk). The reaffirmation reflects the robust operational performance of Edra Solar's 50 MWac solar photovoltaic (PV) plant (the Plant or the Project)...

SEGI ASTANA SDN BHD

Oct 22, 2020

MARC has affirmed its AA- rating on Segi Astana Sdn Bhd's RM415.0 million ASEAN Green Medium-Term Notes facility (MTN facility). The rating outlook, however, has been revised to negative from stable. The current outstanding under the rated facility is RM365 million. The outlook revision...

SOLAR MANAGEMENT (SEREMBAN) SDN BHD

Oct 19, 2020

RAM Ratings has assigned a final AA3/Stable rating to Solar Management (Seremban) Sdn Bhd's (SMS) RM260 mil ASEAN Green SRI Sukuk (2020/2038) (the Sukuk). In assigning the final rating, RAM has reviewed all the relevant transaction documents and assumptions applied. We find them to be in line...

SPARKS ENERGY 1 SDN BHD

Oct 12, 2020

MARC has assigned a preliminary rating of AA-IS to Sparks Energy 1 Sdn Bhd's (Sparks Energy 1) proposed ASEAN Green Sustainable and Responsible Investment (SRI) Sukuk of up to RM220.0 million. The rating outlook is stable. Sparks Energy 1 is a special purpose vehicle incorporated to raise...

UITM SOLAR POWER SDN BHD

Sep 18, 2020

MARC has affirmed its AA-IS rating on UiTM Solar Power Sdn Bhd's (UiTM Solar) Green Sustainable and Responsible Investment (SRI) Sukuk of up to RM240.0 million. The rating outlook is stable. The rating is mainly driven by UiTM Solar's 21-year power purchase agreement (PPA) with Tenaga...

LEADER ENERGY SDN BHD (''LESB'' OR THE ''ISSUER'')

Sep 03, 2020

We refer to our announcement dated 13 August 2020. As the Facility Agent of the above ASEAN Green SRI Sukuk Wakalah, we hereby notify that the Sukukholders have approved the Proposed Resolution in Writing as set out in the letter dated 12 August 2020 from Pacific Trustees Berhad. Please see...

SINAR KAMIRI SDN BHD

Jul 01, 2020

MARC has affirmed its AA-IS rating on Sinar Kamiri Sdn Bhd's Green Sustainable and Responsible Investment (SRI) Sukuk Wakalah of up to RM245.0 million. The rating outlook is stable. Sinar Kamiri owns and operates a 49.0MWac solar photovoltaic plant (SPP), which has been operational since...

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Listings

 
Ihsan Sukuk Berhad 1117716P

Ihsan Sukuk Berhad 1117716P

Issuance Date - 18 Jun 2015

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Tadau Energy Sdn Bhd 1148988K

Tadau Energy Sdn Bhd 1148988K

Issuance Date - 27 Jul 2017

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Quantum Solar Park (Semenanjung) Sdn Bhd 1200950D

Quantum Solar Park (Semenanjung) Sdn Bhd 1200950D

Issuance Date - 6 Oct 2017

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PNB Merdeka Ventures Sdn. Bhd 517991A

PNB Merdeka Ventures Sdn. Bhd 517991A

Issuance Date - 29 Dec 2017

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Segi Astana Sdn Bhd 916663H

Segi Astana Sdn Bhd 916663H

Issuance Date - 8 Jan 2018

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Sinar Kamiri Sdn Bhd  851378X

Sinar Kamiri Sdn Bhd 851378X

Issuance Date - 30 Jan 2018

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UiTM Solar Power Sdn Bhd  1211613P

UiTM Solar Power Sdn Bhd 1211613P

Issuance Date - 27 Apr 2018

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HSBC Amanah Malaysia Berhad 807705X

HSBC Amanah Malaysia Berhad 807705X

Issuance Date - 2 Oct 2019

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Pasukhas Green Assets Sdn Bhd 1293491H

Pasukhas Green Assets Sdn Bhd 1293491H

Issuance Date - 28 Feb 2019

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Telekosang Hydro One Sdn Bhd 1242773K

Telekosang Hydro One Sdn Bhd 1242773K

Issuance Date - 6 Aug 2019

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Cypark Ref Sdn Berhad 1287000T

Cypark Ref Sdn Berhad 1287000T

Issuance Date - 11 Oct 2019

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Edra Solar Sdn Berhad 1057995U

Edra Solar Sdn Berhad 1057995U

Issuance Date - 11 Oct 2019

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Leader Energy Sdn Bhd 1234122X

Leader Energy Sdn Bhd 1234122X

Issuance Date - 16 July 2020

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Resources – Publications, Guidelines and Framework

Report Name Date
Guidelines On Unlisted Capital Market Products Under The Lodge And Launch Framework June 2020 Download
Guidelines On Issuance Of Corporate Bonds And Sukuk To Retail Investors November 2019 Download
Sustainable And Responsible Investment Sukuk Framework (An Overview) November 2019 Download
ASEAN Green Bond Standards 2018 October 2018 Download
ASEAN Social Bond Standards 2018 October 2018 Download
ASEAN Sustainability Bond Standards 2018 October 2018 Download

Available Incentives for SRI issuances in Malaysia

Several incentives are provided to encourage the issuances of SRI sukuk in the market. These include the income tax deduction on the issuance costs of SRI sukuk which was first provided from the year of assessment (YA) 2016 to YA 2020, and has now been extended for three years from YA 2021 to YA 2023.

 

A Green SRI Sukuk Grant Scheme was also established to incentivise issuers by offsetting up to 90% of external review costs incurred in the issuance of green SRI sukuk. For more information on the application for the Green SRI Sukuk Grant Scheme, please refer to here

 

Additional Resources

For Issuance Of Corporate Bonds And Sukuk To Retail Investors

For Issuance Of Corporate Bonds And Sukuk To Retail Investors

For Issuance Of Corporate Bonds And Sukuk To Wholesale Investors

For Issuance Of Corporate Bonds And Sukuk To Wholesale Investors

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