CIMB Islamic Bank Berhad (“CIMB Islamic” or “the Bank”) has ramped up its action in support of the United Nations Sustainable Development Goals (“SDGs”) with the introduction of its first Sustainable Term Investment Account-i (“Sustainable TIA-i”) Tranche, a purpose-driven investment offering for businesses including small and medium enterprises (“SME”).
The Sustainable TIA-i fund placements will be invested into eligible Shariah-compliant sustainable financing assets that are aligned to CIMB Group’s priority SDGs. Sustainable TIA-i will focus primarily on financing assets linked to SDG 8 which promotes Decent Work and Economic Growth, with particular emphasis on assets that are aligned to micro, small and medium enterprises (“MSME”) as defined by Bank Negara Malaysia (“BNM”).
These assets include the financing of activities that contribute to sustainable job creation, economic growth and societal wellbeing, as well as activities that contribute to expanded access to affordable and responsible financial products and services to vulnerable segments in the start-up and MSME sectors.
The Sustainable TIA-i Tranche, which is an extension of the Bank’s existing TIA-i product, is being offered from now until 16 November 2022. Customers can invest a minimum placement as low as RM10,000 and up to RM20 million per transaction, for a tenure of 6 or 12 months at competitive profit rates (indicative) of 3.10% or 3.45% per annum respectively.
The Sustainable TIA-i further provides flexibility for customers who require any early upliftment prior to maturity, where a 50% partial payout of the accrued profit will be provided. The Shariah-compliant fund placements will be invested into low to moderate risk assets under CIMB Islamic’s financing asset portfolio, which is fully owned by CIMB Islamic and monitored closely by a team of experts in ensuring the desired rate of return is achieved.
Ahmad Shahriman Mohd Shariff, Chief Executive Officer of CIMB Islamic said, “The introduction of our Sustainable TIA-i Tranche marks the latest milestone in our continued commitment as a financial intermediary to drive positive impacts among vulnerable segments and the community. As an investment offering that aligns profit with purpose, we believe it is firmly in line with the principles of value-based intermediation as it will contribute towards the long-term sustainability of MSMEs, the lifeblood of our economies.”
“Together with our clients, we look forward to continue playing our part in supporting the SDGs by providing inclusive financial services aligned to the sustainability agenda under our Forward23+ strategic plan,” he added.
Collectively, CIMB Group has already mobilised RM30 billion in sustainable finance under its Green, Social, Sustainable Impact Products and Services (“GSSIPS”) Framework, achieving its target two years ahead of plan. The Group has also committed to achieving Net Zero greenhouse gas (“GHG”) emissions, including Scope 3 financed emissions, by 2050.
In addition to its sustainable finance initiatives, CIMB Group will also be hosting its flagship The Cooler Earth Sustainability Summit from 20 to 24 September 2022 in hybrid format at Mandarin Oriental, Kuala Lumpur, which will also be broadcast online.
Now in its 4th year, the 2022 Summit themed ‘Facilitating a Just Transition’ seeks to reflect on the accelerating global action on climate following COP26 in Glasgow whilst ensuring that climate solutions and social development blueprints are inclusive, equitable and just for all stakeholders. The Sustainable TIA-i is open to all CIMB business banking and SME current account holders.