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SME Bank sets final price of RM500mil green sukuk 

KUALA LUMPUR: SME Bank has set the final price of its sustainability sukuk at 59 basis points above the corresponding five-year Malaysian Government Securities (MGS).

The bank's Islamic medium-term notes (IMTNs) recently received overwhelming response from investors, allowing it to finalise the book building process.

The sukuk received bids of more than 3.56 times or RM1.78 billion of the actual issuance amounting to RM500 million at a competitive rate of 3.10 per cent.

SME Bank chairman Datuk Seri Nazir Ariff said the issuance of the sustainability sukuk inaugurated wider opportunity for small and medium enterprises (SMEs) to develop their business, technology and services, and support the government's aspiration of developing the green technology sector.

The sector is expected to contribute RM100 billion to Malaysia's gross domestic product and generate 230,000 green job opportunities by 2030. 

He added that the numbers would accelerate the economic recovery growth after being dampened by the Covid-19 pandemic.

SME Bank group president and chief executive officer Aria Putera Ismail said the proceeds raised from the sukuk would address the issues of insufficient financing for the green and social related projects. 

"These proceeds will also widen our horizon as we are able to finance projects that directly support 11 of the 17 United Nations Sustainable Development Goals (UN SDGs).

"This milestone is a testament for SME Bank's utmost support on Malaysia's economic recovery and at the same time addressing the issues of making the circular economy in Malaysia the new norm. 

"The bank has long been supporting the green tech SMEs through the green technology financing scheme and other financing facilities," he added.

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