Bank Rakyat Issues Inaugural RM500 Mln ASEAN Sustainability SRI Sukuk

KUALA LUMPUR, Nov 21 (Bernama) -- Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat), via Imtiaz Sukuk II Bhd, has issued its maiden RM500 million ASEAN Sustainability SRI (Sustainable and Responsible Investment) Sukuk.

The issuance is based on the Shariah principle of Wakalah Bi Al-Istithmar, from Bank Rakyat’s existing RM10 billion Sukuk Wakalah Programme.

Maybank Investment Bank Bhd (Maybank IB) is the joint lead manager and facility agent, while Maybank Islamic Bhd is the Shariah adviser for this issuance.

In a joint statement today, Bank Rakyat and Maybank IB said the MARC Ratings Bhd has assigned the highest “Gold” Impact Bond Assessment for Bank Rakyat’s Sustainability Sukuk Framework (framework), which governs the bank’s future sustainable financing raised under the use-of-proceeds format.

“The framework is aligned with the core components of ASEAN green/social/sustainability bond standards issued by the ASEAN capital markets forum and SRI Sukuk Framework issued by the Securities Commission Malaysia,” the statement said.

Maybank IB chief executive officer (CEO) Michael Oh-Lau said Bank Rakyat’s ASEAN Sustainability SRI Sukuk has attracted overwhelming interest from a wide range of investors, including financial institutions, government agencies, insurance companies and asset management companies.

“The sustainability offering appealed to the investors given its scarcity and growing focus on sustainability investments.

“From 2021 to June 2024, Maybank Group has mobilised RM83.2 billion in sustainable finance, exceeding our 2025 target of RM80 billion, as part of our sustainability commitment,” he said.

Bank Rakyat acting CEO Ahmad Shahril Mohd Shariff said the proceeds raised from the sukuk will be used to finance eligible projects that contribute towards environmental and social benefits as outlined in the co-operative bank’s framework.

“This effort will further support the bank’s objective to expand our green and social financing portfolio whilst reinforcing our role as one of the key contributors to the economic growth of the nation,” he added.

-- BERNAMA