Malaysia’s Securities Commission has launched a new framework for Sukuk issuances. Issuers may now use SRI-linked Sukuk proceeds for general purposes, subject to their commitments to future improvements for sustainability outcomes within a predefined timeline. Issuers must set pre-defined Sustainable Performance Targets (SPTs) which will be assessed according to key performance indicators (KPIs) that address ESG issues. The new framework also requires SRI-linked Sukuk issuers to appoint an external reviewer before issuance, and an independent verifier post-issuance to assess compliance with the Framework and the issuer’s sustainability performance.

Source: Regulation Asia