KUALA LUMPUR, Aug 3 — SME Bank expects its Sustainability Islamic Medium-Term Notes (IMTNs) would pave the way in transiting small and medium entrepreneurs (SMEs) into the green circular economy.
In a statement today, the bank said it has set the final price of its sustainability sukuk at 59 basis points above the corresponding five-year Malaysian Government Securities.
Chairman Datuk Seri Nazir Ariff said SME Bank is honoured to be the trailblazer in opening up ways for SMEs to venture into the green economy.
“The issuance of the sustainability sukuk inaugurates a wider opportunity for SMEs to develop their business, technology and services, as well as supporting the government’s aspiration of developing the green technology sector.
“The sector is expected to contribute RM100 billion to the country’s gross domestic product (GDP) and generating 230,000 green job opportunities by 2030,” he said.
Nazir believes these numbers will accelerate the economic recovery after being dampened by the pandemic.
In addition, he said that the appointment of RHB Investment Bank Bhd as the sole principal adviser and sole lead arranger, as well as the experienced joint lead managers from AmInvestment Bank Bhd, CIMB Investment Bank Bhd, Maybank Investment Bank Bhd and RHB Investment Bank Bhd have directly contributed towards the achievement.
Meanwhile, group president and chief executive officer Aria Putera Ismail said the proceeds raised from the issuance of the sustainability sukuk would address the issues of insufficient financing for the green and social-related projects.
“This milestone is a testament to 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,” he said.
The bank said its sustainability approach focusses on sustainable development while balancing the economic, social and environmental impacts in all its business decisions.
The bank said its approach to sustainability is based on the pillars of responsible banking, responsible business practices and creating positive social impact.
It added that the overwhelming response from investors has enabled SME Bank to finalise the book building process, bidding 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.
Source: https://www.malaymail.com/news/money/2021/08/03/sme-banks-sustainability-sukuk-aims-to-transit-malaysian-smes-into-green-ci/1994907