SRI Sukuk and Bond Scheme
As part of ongoing efforts to encourage green financing, the SC established the SRI Sukuk and Bond Grant Scheme (formerly known as the Green SRI Sukuk Grant Scheme) in 2018. The Scheme, administered by Capital Markets Malaysia (CMM), covers up to 90% of the costs incurred by issuers on independent expert reviews of sustainable sukuk issuances under the SC’s SRI Sukuk Framework or bonds issued in Malaysia under the ASEAN Green, Social and Sustainability Bond Standards and SRI-linked Sukuk under the SRI-linked Sukuk Framework or bonds issued under the ASEAN Sustainability-Linked Bond Standards.
- Objective
To incentivise eligible issuers in defraying the external review costs incurred for the issuances under the SC’s SRI Sukuk Framework or bonds under the ASEAN Green, Social and Sustainability Bond Standards and SC’s SRI-Linked Sukuk Framework or bonds under the ASEAN Sustainability-Linked Bond Standards
- Claim
- Issuer can claim for the Grant based on an issue or programme.
- Should there be more than one issuance requiring a separate external review, the issuer is able to claim on that review cost incurred.
- Claim amount
90% of the actual external review cost subject to a maximum of RM300,000. - Eligibility for issuances that qualify for the SRI Sukuk and Bond Grant Scheme
- Green SRI sukuk issuances made under the SC’s SRI Sukuk Framework from July 2017 onwards.
- Social, sustainability or other SRI sukuk issuances made under the SC’s SRI Sukuk Framework from 25 August 2020 onwards.
- Bonds issuances made under the ASEAN Sustainability-Linked Bonds Standards from 28 October 2022 onwards.
- SRI-linked sukuk issuances made under the SC’s SRI-Linked Sukuk Framework from 8 August 2022 onwards
- Application period for the SRI Sukuk and Bond Scheme
From January 2021 until fully utilised. Application form is available here. The grant will be paid on a reimbursable basis within 60 days upon complete submission.
- Tax incentive
As announced in the Malaysian 2021 Budget, income tax exemptions are provided for the recipient of the SRI Sukuk and Bond Grant Scheme for five years from Year of Assessment (YA) 2021 until YA 2025.