SRI Sukuk

Islamic finance is a major contributor for sustainable investment particularly in Malaysia. As the fundamentals of Islamic finance share significant commonalities with Sustainable and Responsible Investment (SRI), there is also tremendous opportunity for Islamic finance to catalyse the development of instruments and funding solutions that support global demand for sustainable projects. The SC introduced the Sustainable and Responsible Investment (SRI) Sukuk framework to facilitate the financing of sustainable investment initiatives that include terms on the utilisation of proceeds, eligibility and disclosure/reporting requirements. Cumulatively,10 SRI Sukuk have been issued with total issuances amounting to RM4.1 billion as of December 2019. As part of an on-going effort to encourage green financing the Green SRI Sukuk Grant Scheme was established by the Securities Commission Malaysia and administered by Capital Markets Malaysia. The grant was to cover the costs incurred by Sukuk issuers for independent expert review on the Green aspects of the projects.

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