CIMB Islamic rolls out Sustainable Term Investment Account-i

KUALA LUMPUR: CIMB Islamic Bank Bhd has introduced its first Sustainable Term Investment Account-i (Sustainable TIA-i) tranche, a purpose-driven investment offering for businesses including small and medium enterprises.

In a statement, 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.

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 (MSME) as defined by Bank Negara.

"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," said CIMB Islamic.

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.

According to the bank, customers can invest a minimum placement as low as RM10,000 and up to RM20mil per transaction, for a tenure of six or 12 months at competitive profit rates (indicative) of 3.10% or 3.45% per annum respectively.

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.

“The introduction of our Sustainable TIA-i Tranche marks the latest milestone in our 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," said CIMB Islamic CEO Ahmad Shahriman Mohd Shariff (pic).

The Sustainable TIA-i is open to all CIMB business banking and SME current account holders, subject to terms and conditions.

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