The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Euromoney innovations in Islamic finance 2016: Khazanah

M$100 million ($18.2 million) sustainable and responsible investment sukuk (Ihsan)

Innovations Islamic 2016 196w
View award winners
Lead manager: CIMB Last year one of Euromoney’s awards went to the IFFIm sukuk which funded immunization programmes: a rare example of Islamic finance being used to achieve a social good.

This year we reward Ihsan – a vehicle of Khazanah, the Malaysian sovereign wealth fund – for a small but intriguing deal designed to support the transformation of schools, under the Yayasan AMIR trust schools programme. This is a non-profit scheme that aims to increase access to quality education in Malaysia’s government schools.

The interesting thing is the way that the performance of the underlying charity is linked to the investor. It is a model the Malaysians are calling ‘Pay-for-success’. “The social impact of this pay-for-success structure is measured using a set of predetermined key performance indicators, which are assessed over a five-year observation timeframe,” says Dato’ Mohd Izani Ghani, chief financial officer at Khazanah.

Social obligation

These KPIs are closely monitored. If they are met, the sukuk holders forgo 6.22% of the nominal value due under the sukuk at maturity and that money stays with the schools, “as part of their [sukuk holders’] social obligation in recognizing the positive social impact generated by the trust schools programme,” says CIMB.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree