SME Bank Announces MYR 3 Billion Sustainability Sukuk to Meet Funding and Working Capital Requirements

Small Medium Enterprise Development Bank Malaysia (SME Bank), an agency under Malaysia’s Ministry of Entrepreneur Development and Cooperatives, has announced its MYR 3 billion sustainability Sukuk Wakalah Programme (Sukuk), which will focus on six initial key sectors of energy, manufacturing, waste, water, transport and building. According to a statement issued by SME Bank on the 5th of July 2021, the agency is the first development financial institution (DFI) in Malaysia to issue a sustainability Sukuk to meet its funding and working capital requirement.

Why it Matters?

Proceeds from the Sukuk issuances would be used to finance projects that directly support 11 of the 17 United Nations Sustainable Development Goals (SDGs), which align with th...