KUALA LUMPUR, Aug 28 — The Securities Commission Malaysia (SC) has launched the Sustainable and Responsible Investment (SRI) Sukuk framework to facilitate the financing of sustainable and responsible investment initiatives.
In a statement today, the SC said the launch of the framework was in line with the initiative set out under its Capital Market Masterplan Two to promote socially responsible financing and investment.
"With the shifts in investor demographics, there are growing concerns over environmental and social impact of business and greater demand for stronger governance and ethics from businesses," it said.
SC chairman Datuk Ranjit Ajit Singh said the framework was part of the SC's developmental agenda to facilitate the creation of an eco-system conducive for SRI investors and issuers.
"Combined with Malaysia's leading position in the global sukuk market, this framework will further enhance the country's value proposition as a centre for Islamic finance and sustainable investments," he said.
He said the additional areas addressed in the framework for the issuance of SRI sukuk include utilisation of proceeds, eligible SRI projects, disclosure requirement, appointment of independent party and reporting requirement.
The proposal on the SRI Sukuk framework was first announced in the 2014 budget speech. — Bernama
