SME Bank’s MYR 500 Million Sustainability Sukuk to Develop SMEs, Support Malaysia’s Green Technology Sector

Malaysia-based Small Medium Enterprise Development Bank Malaysia (SME Bank) has set the final price of its MYR 500 million sustainability Sukuk at 59 basis points above the corresponding five-year Malaysian Government Securities, according to a statement issued by the bank on the 3rd of August 2021. The book building process was finalised following an overwhelming response from investors, with the Sukuk receiving bids of MYR 1.78 billion, or more than 3.56 times of the actual issuance, at a competitive rate of 3.10%.

Why it Matters?

According to Datuk Seri Nazir Ariff, Chairman of SME Bank, the issuance of the sustainability Sukuk would provide more opportunity for small and medium enterprises (SMEs) to develop their business, technology and services...