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SME Bank's Sustainability Sukuk Awarded Best in Class at The Asset Triple A Islamic Finance Awards 2023


KUALA LUMPUR: 17 Aug 2023 – Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank) was honoured with the prestigious Best Sustainability Sukuk Award for SME Category by The Asset Triple A Islamic Finance Awards 2023.

SME Bank Group President/Chief Executive Officer, Datuk Wira (Dr.) Aria Putera Ismail said, “In 2022, the Bank has successfully approved financing worth RM3.25 billion for ESG-related sectors and this marked a significant milestone in our commitment to sustainability. By dedicating specialised funds and proceeds from the Sukuk issuance, we can support projects that promote environmental preservation, social progress, and good governance. These are all essential pillars of a thriving and resilient economy.”

The award-winning Sustainability Sukuk took place in August 2022 and represented SME Bank’s second AAA Sukuk issuance. The total order for the Sukuk issuance surpassed all expectations, valued at RM536 million from the initial desired size of RM300 million. The Sustainability Sukuk was priced at a competitive profit rate of 4.04%, making it an attractive investment option for investors seeking sustainable shariah-compliant financial instruments.

Datuk Wira Aria added, “Significantly, this marks the 6th award the Bank received for the Sustainability Sukuk Wakalah Program. With the above recognition, we have not only demonstrated our dedication to championing ethical standards and values but also showcased our ability to make a positive impact on the community and the environment. As we continue to lead by example, we have set the bar higher for the industry, fostering a more sustainable and responsible financial landscape for the future."

The Sukuk Wakalah programme was assigned AAA ratings and has achieved the Malaysian Rating Corporation Bhd (MARC) Gold standard, the highest rating under MARC's Sustainability Sukuk framework. These ratings are a testament to the high level of creditworthiness and strong governance demonstrated by SME Bank in its sustainable financing endeavours.

The successful issuance of the Sukuk was made possible with the support and collaboration of esteemed financial institutions, including RHB Investment Bank Berhad, AmInvestment Bank Berhad, CIMB Investment Bank Berhad, and Maybank Investment Bank Berhad.

MSMEs interested in the ESG-related financial facilities and entrepreneurial training programmes can contact SME Bank Customer Call Centre at 03-26037700 or visit the official website at www.smebank.com.my.