Malaysia extends grant scheme for green Islamic bonds
Malaysia’s capital markets regulator released on Tuesday details of a grant scheme for issuers of green Islamic bonds, or sukuk, aiming to help offset the costs of external reviews needed for such transactions.
Malaysia is seeking to capitalise on interest for green bonds, a growing category of fixed-income securities that help raise capital for projects with environmental benefits.
In February, Indonesia became the first Asian sovereign to sell green sukuk, raising $1.25 billion via a five-year deal, while Malaysia has seen a few corporates issuing green sukuk linked to renewable energy projects.
Issuers can claim up to 90 percent of the independent expert review costs, subject to a maximum 300,000 ringgit ($77,000).
The grants are open to both domestic and foreign companies in any currency, provided the sukuk are issued in Malaysia, with grants being tax-exempt provided applications are received before December 2020.
The scheme is administered by Capital Markets Malaysia, an entity established by Malaysia’s Securities Commission to promote its capital market. ($1 = 3.8650 ringgit)
Source: reuters
