A first globally rated SIB…and it’s in Malaysia (and Sukuk too!) while a bond but not quite a SIB, a retail charity bond closes early having raised 40 million dollars in the UK… Have a great weekend…
RAM Ratings Releases Credit FAQs On Malaysia’s First SRI Sukuk
Matthew Amlôt – CPI Financial
Sponsored by Khazanah Nasional Berhad, the Sukuk Ihsan is the first sustainable responsible investment (SRI) Sukuk to be approved under the Securities Commissions’ revised Sukuk guidelines (issued in August 2014). To RAM’s knowledge, it is also the first social-impact bond (SIB) to be rated globally. Although SIBs have no standard definition, they – as the name suggests – are typically structured based on a “pay for success” or “results-based” approach.
The report addresses frequently asked questions on SRI Sukuk and articulates RAM’s rating approach to the Sukuk Ihsan. The initial issue of the Sukuk Ihsan will be established under the Islamic principle of Wakalah Al-Istithmar, where the proceeds will be used to fund eligible Sukuk investments. Khazanah, in turn, will use the proceeds to fund Shari’ah-compliant eligible SRI projects.
Retail Charity Bond Raises £27m And Closes Early
Kirsty Weakley – Civil Society
A retail charity bond offer for Hightown Praetorian and Churches Housing Association closed early after raising £27m – £17m more than expected.
The housing association was the second organisation to make use of the Retail Charity Bonds platform created by Allia to list a bond on the London Stock Exchange and when it launched the bond earlier this month said it hoped to raise £10m.
The housing association which has an annual income of around £45m, builds and manages more than 4,400 properties in Hertfordshire, Bedfordshire and Buckinghamshire.