CIMB Islamic Accelerates SDG Action by Launching Sustainable Term Investment Account-i for Businesses, Including SMEs

Published on: 19 September 2022
by KnowESG
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With the establishment of its first Sustainable Term Investment Account-i Tranche, CIMB Islamic Bank Berhad increased its support for the United Nations Sustainable Development Goals (SDGs). It is a purpose-driven investment choice for businesses, including small and medium enterprises (SMEs). The Sustainable TIA-i fund placements will be invested in Shariah-compliant sustainable finance assets that are aligned with the key SDGs of the CIMB Group.

Sustainable TIA-i will largely focus on financing assets associated with SDG 8, which promotes Decent Work and Economic Growth, with a special emphasis on assets associated with micro, small, and medium enterprises (MSMEs) as defined by Bank Negara Malaysia (BNM). 

These assets include actions that contribute to long-term job creation, economic growth, and societal well-being, as well as activities that lead to increased access to affordable and responsible financial products and services for 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. The Sustainable TIA-i further provides flexibility for customers who require any early upliftment before maturity, where a 50% partial payout of the accrued profit will be provided.

The Shariah-compliant fund placements will be invested in low to moderate-risk assets within CIMB Islamic's financing asset portfolio, which is 100% owned by CIMB Islamic and rigorously overseen by a team of professionals to ensure the appropriate rate of return is attained.

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 to the long-term sustainability of MSMEs, the lifeblood of our economies. Together with our clients, we look forward to continuing playing our part in supporting the SDGs by providing inclusive financial services aligned to the sustainability agenda under our Forward23+ strategic plan.”

CIMB Group has already mobilised RM30 billion in sustainable finance through its Green, Social, and Sustainable Impact Products and Services (GSSIPS) Framework, surpassing its objective by two years. The Group has also committed to achieving Net Zero greenhouse gas (GHG) emissions by 2050, including emissions financed under Scope 3.

In addition to its sustainable financial activities, CIMB Group will organise its flagship The Cooler Earth Sustainability Summit in a hybrid format from September 20 to 24, 2022, at the Mandarin Oriental in Kuala Lumpur, which will also be streamed online.

The 2022 Summit, now in its fourth year and entitled 'Facilitating a Just Transition,' strives to reflect on the accelerated global climate action following COP26 in Glasgow while ensuring that climate solutions and social development blueprints are inclusive, equitable, and just for all stakeholders.

Source: CIMB

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