A first Malaysian Islamic SIB using Sukuk principles while the UK government encourages more social investment schemes with tax breaks.
Investors On The Hook In First SRI Sukuk From Malaysia
Christina Khouri – Global Capital
Malaysia’s Khazanah Nasional has priced the first ringgit-denominated socially responsible investment (SRI) sukuk (first announced here). The product was a strong test of investor commitment to SRI goals as it uses a structure that pays less if the underlying education project is successful.
The sovereign wealth fund raised MR100m ($27m) from a seven year sukuk via sole lead arranger CIMB and joint shariah advisers CIMB Islamic Bank and Amanie Advisors on June 2.
Proceeds from the sukuk will be used by Yayasan AMIR, a non-profit organisation supported by Khazanah, whose remit is to improve accessibility to quality education in government schools through its Trust Schools Programme, a public-private partnership with the Ministry of Education.
UK Gov’t Aims To Make Social Investing ‘Mainstream’
Michelle Abrego – City Wire
The government wants to bring social impact investment to the masses and advisers have a key role to encourage investors to consider these solutions said financial secretary to the Treasury David Gauke.
Social impact investing puts money into projects that deliver financial returns while having a positive social or environmental impact.
Since July 2014 investors can deduct 30% of the cost of a social investment from their income tax liability, provided they hold onto it for at least three years. Social enterprise firms need to be approved by the HM Revenue and Customs before an investor can claim relief.
In this year’s Budget, the government announced details of a new social venture capital trust scheme, which will encourage investment in companies that invest in social organisations and allow indirect investments into social ventures.