KUALA LUMPUR, Malaysia, Aug 22 (Bernama) -- Tek Securities (Labuan) Ltd. (TEK) today announced the launch of the world's first Climate Sukuk that features carbon credits as a profit payout, a groundbreaking financial instrument structured to support global climate initiatives. The launch was formalized through an engagement letter with Unity Group Holdings International Limited (UNITY), a leading player in the climate and environmental sector. The historic event was witnessed by Mr. Affendi Rasdi, Director General of the Labuan Financial Services Authority (LFSA).
This innovative Sukuk, a Sharia-compliant bond, redefines sustainable finance by directly linking investor returns to tangible environmental outcomes. Unlike traditional Sukuk that offer cash dividends, this new structure provides investors with a share of carbon credits generated from verified climate projects. These credits, representing one tonne of carbon dioxide equivalent removed or avoided, offer a dual benefit: a financial return and a direct contribution to global decarbonization efforts.
The unique structure was designed by TEK to leverage the robust and progressive regulatory framework of the Labuan International Business and Financial Centre (Labuan IBFC), positioning it as a global hub for sustainable finance. The flexibility and Sharia-compliant environment of Labuan IBFC were crucial in enabling the creation of this novel instrument, which aligns with both Islamic finance principles and the United Nations' Sustainable Development Goals (SDGs).
"We are incredibly proud to pioneer this innovative Climate Sukuk," said a spokesperson for Tek Securities (Labuan) Ltd. "By integrating carbon credits directly into the Sukuk's profit mechanism, we're not only creating a new asset class but also providing a direct and transparent way for investors to participate in and benefit from climate action. This is a significant step towards mobilizing private capital for the green transition, and we are grateful for the support of the LFSA in making this a reality."
The launch of this Climate Sukuk marks a new era in sustainable and Islamic finance, offering a scalable model for mobilizing capital towards climate projects. It appeals to a wide range of investors, from institutional funds seeking ESG-compliant assets to individual investors looking for a way to contribute to environmental causes while earning a return.
Key Features of the Climate Sukuk:·
Innovative Structure: The world's first Sukuk to use carbon credits as a profit payout.
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Sharia-Compliant: Adheres to Islamic finance principles, making it accessible to a broad market.
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Environmental Impact: Directly funds verified climate projects, contributing to global decarbonization goals.
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Labuan IBFC Advantage: Structured under the flexible and supportive regulatory environment of the Labuan International Business and Financial Centre.
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Partnership: Strong collaboration between Tek Securities (Labuan) Ltd., the structuring agent, and Unity Group Holdings International Limited, the carbon project partner.
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RMB-denominated climate sukuk have distinct features that blend the principles of Islamic finance with green finance, and they are issued in Chinese Yuan (RMB). This launch is a significant step towards creating a more sustainable and equitable financial system, demonstrating how financial innovation can be a powerful tool for addressing the urgent challenge of climate change.
About Tek Securities (Labuan) Ltd. Tek Securities (Labuan) Ltd. is a licensed securities firm operating under the Labuan International Business and Financial Centre (Labuan IBFC). TSL specializes in structuring and arranging innovative financial products that meet the evolving needs of the global market.
About Unity Group Holdings International Limited Unity Group Holdings International Limited is a leader in the climate and environmental sector, specializing in the development, management, and verification of high-quality carbon projects globally.
SOURCE: Tek Securities Limited
FOR MORE INFORMATION, PLEASE CONTACT:
Communications Department
Tek Securities Limited
Tel: +6011-1886 6887
Email: marketing@tekfinancialgroup.com
Website: www.tekfinancialgroup.com
--BERNAMA
