Malaysia’s first Green Sukuk

Securities Commission Malaysia has announced the issuance of Malaysia’s first green Sukuk under its Sustainable & Responsible Investment (SRI) Sukuk framework.

SC chairman Tan Sri Ranjit Ajit Singh said, “We believe that there is a significant opportunity arising from strong global interest in green financing where innovative fundraising instruments like green and SRI Sukuk is a viable solution to address global needs for green and other forms of sustainable and responsible financing.”

To complement SRI Sukuk framework and promote greater utilisation of green Sukuk as a fundraising channel, several incentives are in place to attract green issuers including tax deduction until year of assessment 2020 on issuance costs of SRI Sukuk 
approved or authorised by or lodged with the SC, tax incentives for green technology activities in energy, transportation, building, 
waste management and supporting services activities and financing incentives under the Green Technology Financing Scheme with 
total funds allocation of RM5bn until 2022.

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