Islamic Finance

World’s first ESG sukuk fund another step forward for Malaysia’s responsible finance


Photo for illustrative purposes only. Solar panels being installed at a power plant. Caiaimage/Trevor Adeline

Malaysia’s Shariah-compliant BIMB Investment Management launched the world’s first environmental, social and governance (ESG) sukuk fund on August 1. Reflecting a growing responsible finance sector in Malaysia, the company’s CEO told Salaam Gateway the move was in response to market interest.

BIMB’s ESG Sukuk Fund is the company’s fifth ESG-focused fund as a result of its partnership since 2015 with London-based Arabesque Asset Management, whose S-Ray proprietary methodology is used in the five funds’ portfolio strategy.

“We notice interest in Shariah, ESG and quantitative rules-based funds,” BIMB Investment chief executive officer Najmuddin Mohd Lutfi told Salaam Gateway in an e-mail.

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tags:

ESG
Fintech
Funds
Green finance
Responsible Finance
SRI
Sukuk
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Stephanie Augustin