KUALA LUMPUR, Jan 7 — Bank Islam Malaysia Bhd has introduced the Ihsan Sustainability Investment Account (ISIA) to deliver positive social and environmental impact through social finance.
Simultaneously, ISIA is designed for clients seeking stable short-term investments to navigate the uncertainties often associated with equities and fixed-income investments.
Group chief executive officer Datuk Mohd Muazzam Mohamed said ISIA reflected the bank’s commitment to advancing prosperity for all.
“Through ISIA, we enable investors to join us in shaping a nature-positive economy by venturing into Islamic finance potentials,” he said in a statement today.
ISIA is available for high-net-worth individuals and non-individual investors with a minimum investment amount of RM50,000 for individuals and RM1 million for non-individuals, respectively.
ISIA offers an indicative 4.50 per cent return per annum, where 2.50 per cent portion of the profit will be contributed to Pusat Pungutan Zakat Majlis Agama Islam Wilayah Persekutuan or Bank Islam Sadaqa House.
“This is one of the social elements incorporated in this campaign feature. The profit will be distributed semi-annually and within the investment tenure of 24 months,” Mohd Muazzam said.
ISIA is the pioneering investment account designed to offer investors access to environmental, social, and corporate governance (ESG) or sustainable development goals (SDG)-aligned financing assets curated to support the United Nations Sustainable Development Goals objectives and favourable climate change and principle-based taxonomy classification as per Bank Negara Malaysia’s framework.
The funds will be invested in a diversified portfolio of the bank’s non-retail assets involving renewable energy, green financing, clean transportation, clean water and sanitation and other sectors that contribute to creating sustainable cities and community goals.
The bank has established a rigorous oversight framework that involves meticulous processes such as thorough due diligence, comprehensive impact assessment and continuous monitoring of the fund. — Bernama
