KUALA LUMPUR (Sept 19): CIMB Islamic Bank Bhd (CIMB Islamic) has launched its first Sustainable Term Investment Account-i (Sustainable TIA-i) Tranche, a purpose-driven investment offering for businesses including small and medium enterprises (SMEs).
In a statement on Monday (Sept 19), the bank said the Sustainable TIA-i fund placements will be invested into eligible Shariah-compliant sustainable financing assets that are aligned to CIMB Group’s priority Sustainable Development Goals (SDGs).
CIMB Islamic said 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 (MSMEs) as defined by Bank Negara Malaysia.
It said these assets include the financing of activities that contribute to sustainable job creation, economic growth and societal well-being, 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 Nov 16, 2022.
CIMB Islamic said customers can invest a minimum placement as low as RM10,000 and up to RM20 million per transaction, for a tenure of six or 12 months at competitive profit rates (indicative) of 3.1% or 3.45% per annum respectively.
It said 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.
CIMB Islamic chief executive officer Ahmad Shahriman Mohd Shariff said the introduction of the Sustainable TIA-i Tranche marks the latest milestone in the bank's 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 said.