Securities Commission Malaysia expands SRI Sukuk and Bond Grant Scheme to facilitate sustainable finance

29 September 2022

On 23 August 2022, the Securities Commission Malaysia (“SC”) announced the expansion of the Sustainable and Responsible Investment (“SRI”) Sukuk and Bond Grant Scheme (“Grant Scheme”) to facilitate the provision of sustainable finance to companies raising sukuk.

The expansion of the Grant Scheme will enable eligible SRI-linked sukuk issuers to apply to offset up to 90% of their external review costs, subject to a maximum of RM300,000 per issuance. The Grant Scheme (formerly known as Green SRI Sukuk Grant Scheme), has now been extended to SRI-linked sukuk issued under the SC’s SRI-linked Sukuk Framework introduced in June 2022 (“Framework”), and bonds issued under the ASEAN Green, Social and Sustainability Bond Standards.

The key distinguishing feature of the Framework is the requirement to have external reviews, both at pre and post-issuance stages. The SC believes that such independent reviews will be crucial to ensure compliance with the issuer’s sustainable objectives, as well as alignment with the Framework.