SME Bank clinches Best Sustainability Sukuk Award at Islamic Finance Awards 2024

KUALA LUMPUR (Oct 9): SME Bank Malaysia Berhad was once again honoured with the prestigious Best Sustainability Sukuk Award for SME category by The Asset Triple A Islamic Finance Awards 2024.

The Bank had won in the same category in the 2023 edition.

SME Bank acting group president and CEO Datuk Dr Mohammad Hardee Ibrahim said the recognition marked the bank’s seventh award for the Sustainability Sukuk Wakalah programme.

“The award is a testament to our commitment in recognising sustainability as an integral component of the economy.

“From the year 2022 up until August 2024, we have successfully approved sustainable financing worth RM7.76 billion, and this underscores our mission to empower SMEs and promoting sustainable growth, whilst contributing to the nation’s economic prosperity,” he said.

The award-winning Sustainability Sukuk took place in May 2023 and marked SME Bank’s third AAA Sukuk issuance. The total order for the Sukuk issuance exceeded RM1 billion, surpassing the initial desired size of RM500 million.

The Sustainability Sukuk was priced at a competitive profit rate of 4.05 per cent, making it an attractive investment option to cater to the burgeoning demand from investors.

Additionally, SME Bank’s Sukuk Wakalah programme was assigned AAA ratings by the Malaysian Rating Corporation Bhd (MARC) and has achieved the Gold standard, the highest rating under MARC’s Sustainability Sukuk Framework Assessment.

Meanwhile, SME Bank chief sustainability officer Zakiah Mat Esa said as a development financial institution mandated in value creation for SMEs, SME Bank remains committed in supporting Malaysia’s aspirations towards achieving net-zero emissions by 2050 through its innovative financial products.

“The proceeds of the Sustainability Sukuk Wakalah programme will exclusively be utilised to finance projects that are aligned with environmental, social, and governance (ESG) considerations.

“This further spotlights SME Bank’s proven track record of creditworthiness and strong governance in sustainable practices, which also aligns with Bank Negara Malaysia’s value-based intermediation to make a positive and lasting impact on society and the community at large.”

The successful issuance of the Sukuk was led by various financial institutions, namely RHB Investment Bank Berhad, AmInvestment Bank Berhad, CIMB Investment Bank Berhad, and Maybank Investment Bank Berhad.

For further details on SME Bank’s financial facilities and entrepreneurial training programmes, visit www.smebank.com.my or its Facebook page, or call its Contact Centre on 03-26037700. – Bernama