KUALA LUMPUR: SME Bank, an agency under the Ministry of Entrepreneur Development and Cooperatives, is issuing a RM3 billion Sukuk Wakalah, becoming the first development financial institution in the country to issue sustainability sukuk.
The sukuk was to meet its funding and working capital requirement, SME Bank said in a statement today.
Minister of Entrepreneur Development and Cooperatives Datuk Seri Dr Wan Junaidi Tuanku Jaafar said the issuance was timely during this time of crisis to balance doing business for profit and doing good to fulfil its obligations towards the environmental, social and governance (ESG).
"SME Bank's effort to be part of the global trend is a smart move to secure a strong financial imprint in the country's financial landscape for now and in the future," he added.
SME Bank chairman Datuk Seri Nazir Ariff said the AAA-IS rating accorded by Malaysian Rating Corporation Bhd for the sukuk was testament of its strength and commitment in upholding this virtue.
"SME Bank has been incorporating ESG elements in carrying our mandate since its establishment," he added.
Group president and chief executive officer Aria Putera Ismail said proceeds from the sukuk would be channeled to finance projects that directly support 11 of the 17 United Nations Sustainable Development Goals.
"The 11 categories chosen are aligned with the green and social project categories recognised by the Asean Sustainability Bond Standards, Asean Social Bond Standards and Asean Green Bond Standards issued by the Asean Capital Market Forum," he added.