MARC has assigned a “Gold” Impact Assessment to Bank Pembangunan Malaysia Berhad’s (Bank Pembangunan) Sustainable Development Sukuk Framework (Framework).

The focus of the Framework is on supporting the financing needs of targeted and new growth sectors that are important to advancing sustainable economic growth and promoting inclusive growth and climate transition, consistent with Bank Pembangunan’s mandate to catalyse sustainable development. The Framework’s key impact themes include renewable energy, green/efficient buildings, clean transportation, circular economy, sustainable waste and wastewater management, employment generation and retention, accessible healthcare and education, and climate action, among others.

MARC is of the opinion that the Framework is aligned with the core components of the ASEAN Sustainability Bond Standards, the ASEAN Green Bond Standards and the ASEAN Social Bond Standards in addition to Securities Commission Malaysia’s (SC) Sustainable and Responsible Investment Sukuk Framework. Issuances under the Framework are intended to accelerate the delivery of finance targeting the United Nations Sustainable Development Goals, particularly to foster the transition to a low-carbon economy, support economic recovery and mitigate the economic consequences of the COVID-19 pandemic. The Framework will support and build on Bank Pembangunan’s multisector approach to facilitating the national shift towards a more inclusive climate-resilient development path.

Incorporated in 1973, Bank Pembangunan is Malaysia’s largest Development Financial Institution (DFI) and one of the country’s first DFIs. Bank Pembangunan is wholly owned by the Malaysian Government through the Minister of Finance Inc and the Federal Lands Commissioner. Bank Pembangunan is presently in the midst of a 3-Year Strategic Transformation Plan 2020–2022, which has seen the bank move towards a value-based intermediation approach that is more development impact–driven to address the convergence of economic, social and environmental challenges, from climate change and growing income inequalities to technological change.