“Solutions: ESG bond index series could spur more funds” – The Edge Markets – September 25, 2019

On September 25, 2019 The Edge Markets reported that in late July, “Bond Pricing Agency Malaysia (BPAM) officially launched the country’s first ESG Bond Index series, which covers Malaysian ringgit-denominated long-term bonds and sukuk that have been classified as ESG, according to several standards.

All the bonds and sukuk on the index are issued or aligned with the Securities Commission Malaysia’s Sustainable and Responsible Investment (SRI) Sukuk framework, Asean Green Bond Standard, Asean Social Bond Standard, Asean Sustainability Bond Standard and the United Nations Sustainable Development Goals (UN SDGs). The proceeds from the bonds and sukuk are used for activities under the ESG and SDG umbrella.

The index is weighted market capitalisation and rebalanced monthly. As at July, there were 111 bonds on the index from nine issuers, with a total market capitalisation of RM4.05 billion. The majority of the constituents fall under the environmental category (85%), followed social (4%) and governance (11%). All of the bonds and sukuk are issued local corporates.”

You may read the article on The Edge Markets internet site.