Bond Pricing Agency Malaysia (BPAM) has launched the country's first environmental, social and governance (ESG) bond index series. BPAM ESG Bond Index Series will monitor a total of 111 bonds from nine issuers with the total market capitalisation of RM4.05bil. It consists of bonds that were issued under or aligned with Securities Commission’s Sustainable and Responsible Investment (SRI) Sukuk framework, Asean Green Bond Standard, Asean Social Bond Standard, Asean Sustainability Bond Standard and United Nation (UN) Sustainable Development Goals (SDG). Index calculation uses BPAM’s evaluated mid prices. BPAM's head of financial engineering and research Noor Bazlina Sharifmuddin said the index series has the potential to introduce ESG bonds to a wider audience who have been looking for sustainable investment options. It is hoped that the launch of the ESG Index Series by BPAM as a benchmark for SRI will improve SRI awareness and support the government’s initiatives amongst local fixed income investors to support these bonds in the long run.

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