MARC Solutions has assigned a “Gold” Impact Assessment to Permodalan Kelantan Berhad’s (PKB) Social Finance Framework. The framework sets forth the guiding principles for PKB’s undertaking of Social Finance Transactions (SFTs) to fund eligible assets that are expected to advance financial inclusion and socioeconomic development for underserved communities.

As a state-owned entity under the Kelantan State Government, PKB plays a distinctive role, underpinned by a strong social purpose. Its core business is the Ar-Rahn Islamic pawnbroking franchise, which provides Shariah-compliant, collateral-based financing to individuals and microentrepreneurs who may face barriers to accessing conventional financial services. Operating through 35 branches across nine states and guided by the state’s Membangun Bersama Islam (Developing with Islam) philosophy, PKB offers a responsible and viable alternative to informal and high-cost credit, supporting personal, educational and small-business needs.

Proceeds raised from the SFTs under the framework will be utilised to finance expenditures under the following eligible categories:

•  Access to Essential Services – Financial Inclusion
• Access to Essential Services – Telecommunications
• Socioeconomic Advancement and Empowerment – Local Tourism and Training Facility

MARC Solutions opines that the framework is aligned with the core components of the applicable guidelines, frameworks, and principles published by the Securities Commission Malaysia, ASEAN Capital Markets Forum, and the International Capital Market Association, among others.

The “Gold” assessment of the framework reflects MARC Solutions’ view that the utilisation of proceeds under the framework is expected to generate positive social impacts, in alignment with five of the 17 United Nations Sustainable Development Goals.