scholarly journals Islamic Bonds (Sukuk) in Malaysia

ICR Journal ◽  
2015 ◽  
Vol 6 (4) ◽  
pp. 489-508
Author(s):  
Inam Ullah Khan
Keyword(s):  
Middle East ◽  
Social Impact ◽  
Socially Responsible Investment ◽  
Secondary Market ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Responsible Investing ◽  
Social Impact Bonds ◽  
Sustainable And Responsible Investment

This article introduces the various types of sukuk that exist in the Malaysian secondary market. The Malaysian sukuk market was initially debt-based which attracted criticism from the Shariah scholars from the Gulf and Middle East. However, the Malaysian sukuk market made a turn towards equity and ijarah sukuk and ventured into “green sukuk” or socially responsible investment (SRI) sukuk. To facilitate the financing of sustainable and responsible investment initiatives, the Securities Commission of Malaysia (SC) has launched the Sustainable and Responsible Investment (SRI) sukuk Framework in 2014. The introduction of the SRI sukuk framework is seen to be in line with the rising trend of “green bonds” and “social impact bonds” that have been introduced globally to facilitate and promote sustainable and responsible investing. The writer has presented different examples from both regions to show that the gap has been bridged. However, despite this convergence the author recommends a revisit of the controversial debt-based instruments by Malaysian Shariah scholars.  

scholarly journals Sustainable Banking: New Forms of Investing under the Umbrella of the 2030 Agenda

2020 ◽  
Vol 12 (5) ◽  
pp. 2096 ◽  
Author(s):  
Mariano Méndez-Suárez ◽  
Abel Monfort ◽  
Fernando Gallardo
Keyword(s):  
Social Impact ◽  
Positive Impact ◽  
Socially Responsible ◽  
Public And Private ◽  
Responsible Investment ◽  
Valuation Model ◽  
2030 Agenda ◽  
Socially Responsible Investments ◽  
Social Impact Bonds ◽  
Investment Portfolios

(1) Social Impact Bonds (SIBs) foster the relationships between public and private sectors while adding value to new forms of investment that are closely linked to Socially Responsible Investments (SRIs). In this context, Sustainable Developments Goals (SDGs) aim to strengthen global partnerships in order to achieve the 2030 Agenda. Sustainable banking should consider its role in both new responsible investment products and the 2030 Agenda. This study aims to: (i) estimate the ROI of SIBS, (ii) define a financial formulation and a measurement system, and (iii) explain the relationship between SIBs and SDGs. (2) This research analyzes SIBs from an SDG approach, and proposes a valuation model based on a financial options valuation methodology that clarifies the financial value of the world’s first SIB (Peterborough Prison, UK). (3) Findings suggest that investors expect to have a negative return of 16.48%, and that this expected loss may be compensated for by the short- and long-term positive impact of an intervention in society. (4) It is shown that SIBs provide an opportunity to reach SDG 17 and improve sustainable investment portfolios, while providing an opportunity to strengthen a company’s Corporate Social Responsibility policy and its corporate reputation.

scholarly journals AN INNOVATIVE FINANCING INSTRUMENT TO PROMOTE THE DEVELOPMENT OF ISLAMIC MICROFINANCE THROUGH SOCIALLY RESPONSIBLE INVESTMENT SUKUK

2019 ◽  
Vol 4 (2) ◽  
pp. 237-250
Author(s):  
Mohamed Yassine Khouildi ◽  
Salina Hj. Kassim
Keyword(s):  
Compliant Mechanism ◽  
Socially Responsible Investment ◽  
Green Energy ◽  
High Potential ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Library Research ◽  
Financing Mechanism ◽  
Islamic Microfinance ◽  
Sustainable And Responsible Investment

Purpose: Socially responsible investment (SRI) sukuk has a high potential to be an innovative financing mechanism for Islamic microfinance. This paper explores the possibility of implementing SRI sukuk for raising funds to support the microfinance industry and to promote financial inclusion. It also aims to identify the associated issues and challenges in implementing the SRI sukuk for microfinance purpose.   Methodology: The paper uses qualitative research method through a thorough review of existing literature, archives, and library research related to the area of social, sustainable and responsible investment sukuk, Islamic microfinance and their related issues.   Findings: The SRI sukuk has a high potential to be developed as innovative shariah-compliant mechanism as shown by Malaysian experience in issuing the SRI sukuk to develop socially-related projects including the educational and green energy sectors. The paper also highlights and learn from the successful experience of the European Bank for Reconstruction and Development in issuing the first microfinance bonds.   Significance/Originality: The findings from this study provide inputs to the relevant stakeholders in implementing new financial tools to develop the social sector, especially Islamic microfinance in helping the poor and assist them to become economically independent. New innovative tools for raising funds in microfinance is highly needed to achieve sustainability of the microfinance industry. Type of paper:  Research paper

scholarly journals Exploring Potentials of Philanthropic Islamic Financial Instruments in Providing Healthcare Services for Underprivileged

2021 ◽  
Vol 8 (Special Issue) ◽  
pp. 239-260
Author(s):  
Rusni Hassan ◽  
Khairul Fikry Jamaludin ◽  
Mohamad Benaicha
Keyword(s):  
Social Services ◽  
Social Impact ◽  
Relevant Literature ◽  
Healthcare Services ◽  
Healthcare Sector ◽  
Financial Instruments ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Ethical Finance ◽  
Social Impact Bonds

Philanthropic financial instruments utilize donated funds or assets in order to deliver social services for society. NGOs may not be able to operate the social services efficiently in the absence of such funds. Lately, there are plenty of organizations that have taken initiatives to render social services for targeted populations in order to curb social problems such as poverty, hunger, crimes, etc., through the use of some forms of philanthropic instruments including Islamic social finance, ethical finance, and others. Today, however, philanthropic financial instruments such as socially responsible investment (SRI), social impact bonds (SIB), and even Waqf are issued by financial institutions rather than socially driven institutions. As such, they have been treated as commercial financial instruments rather than socially driven mechanisms. This paper aims to elucidate the potentials of selected modern financial philanthropic instruments that deal with the healthcare sector. The strengths and weaknesses of the selected instruments will be assessed to explore their potentials in serving the healthcare services sector particularly for the underprivileged. The healthcare sector is highlighted as the focus of this study due to its relevance to the present challenge of the Covid-19 pandemic. This is an exploratory study that adopts the qualitative method whereby a rigorous review of the relevant literature is conducted to examine the potential that philanthropic Islamic financial instruments can offer in providing healthcare services to the underprivileged. The findings elaborate on three important models of philanthropic instruments, namely social impact bonds (SIB), development impact bonds (DIB), and takaful-waqf models. It was also found that these philanthropic instruments have varied strengths and weaknesses that require rectification in the future.

scholarly journals The Reasoning of a Responsible Investment Position in the Structure of the Stock Exchange Market

2021 ◽  
Vol 29 (4) ◽  
pp. 232-240
Author(s):  
Anna Vorontsova ◽  
Alex Plastun ◽  
Hanna Filatova ◽  
Elena Kostenko ◽  
Eldar Dzhobava
Keyword(s):  
Stock Market ◽  
Stock Exchange ◽  
Socially Responsible Investment ◽  
Stock Exchanges ◽  
Exchange Market ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Responsible Investing ◽  
Market Transformation

Purpose: To substantiate the place and role of the responsible investment in the structure of the stock exchange market. Methods: Structure-functional in order to form an idea of the structure of the stock exchange market, determining the place and role of responsible investment elements in the stock market organization; systematic analysis to identify current trends and patterns in the functioning of the socially responsible investment segment by geographical regions of the world; statistical and graphical methods for quantitative and visual presentation of the results of the stock market sectors analysis, represented by responsible investment elements. Findings: The definition of «responsible investment» and «stock market» has been clarified; a number of subjects, objects and forms of responsible investment, which are elements of the stock market, are singled out and substantiated; the generalization of activities of stock exchanges in the field of responsible investing is carried out; the dynamics of stock market sector indicators, which are represented by elements of responsible investment, are analyzed; key reporting standards used by stock exchanges in disclosing ESG issues are analyzed. Theoretical Implications: A comprehensive assessment of the functioning of socially responsible investment segment as part of the stock market is carried out, the place and role of responsible investing in the stock market structure are substantiated, which creates a basis for the development of effective measures to increase the stock market efficiency of Ukraine and its transformation into an effective and stable source of investment resources. Future Research: The results can be used in the context of further study of the stock market transformation in Ukraine on the basis of a socially responsible trajectory and fractal analysis. Paper Type: Theoretical.   The study was performed within the state budget research «Fractal model of the stock market transformation in Ukraine: socially responsible investment to achieve the Sustainable Development Goals» № 0121U100473.

Does Socially Responsible Investing Pay in Developing Countries? A Comparative Study Across Select Developed and Developing Markets

2021 ◽  
pp. 231971452098028
Author(s):  
Vanita Tripathi ◽  
Amanpreet Kaur
Keyword(s):  
Developing Countries ◽  
Performance Evaluation ◽  
Social Impact ◽  
Developed Countries ◽  
Socially Responsible Investing ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Responsible Investing ◽  
Index Evaluation ◽  
Developing And Developed Countries

Socially responsible investing (SRI) is the catalyst in aligning financial growth with sustainable development. The current study is an attempt to investigate the viability of responsible investment across major developing and developed countries of the world. The authors evaluate and compare the performance of socially responsible indices, against their general and conventional counterparts, in select developing and developed countries through market conditions of bull and bear over a 12-year window. Descriptive statistics and risk-adjusted-performance evaluation methods of performance evaluation reveal socially responsible investing to be non-penalizing in developing countries. Premium rewards earned by SRI help the responsibility indices in emerging countries secure topmost ranks, using Fama’s decomposition model. While no significance in difference of performance is found among the indices in overall period, the study finds that the SRI strategy in emerging economies can provide investors with a safe investment vehicle during adversity. Thus, SRI can provide diversification benefit to the international investor seeking country effect, social impact as well as financial reward through responsible investing. The study on SRI index evaluation implies useful insights for achieving global sustainability goals through the use of financial tools to every market participant, especially in the era of globalization.

scholarly journals Responsible Investing: A Study on Non-Economic Goals and Investors’ Characteristics

2020 ◽  
Vol 9 (SI) ◽  
pp. 63-78
Author(s):  
Renuka Sharma ◽  
Kiran Mehta ◽  
Vishal Vyas
Keyword(s):  
Socially Responsible Investment ◽  
Individual Investors ◽  
Wealth Creation ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Fund Managers ◽  
Responsible Investing ◽  
Sustainable Investment ◽  
Rational Investment ◽  
The Relationship

The notion of rational investment is not attuned with the idea of socially responsible investment. Incongruence with conventional investments, the SRI/sustainable investment/ethical investment is pertained to ethical, environmental and social criteria (Eccles and Viviers,2011). All investors are not single-minded for an objective of wealth creation. The welfare of society and the environment are among the other drivers of investment. In certain cases, investors do prefer sustainable development to personal financial aspects (Beal et al., 2005). The present study has primarily focused on assessing the relationship between individual investors’ attributes and their noneconomic goal in order to comprehend their socially responsible investment behaviour specifically in Indian scenario. The findings of study are useful for fund managers, regulators and researchers as study has provided useful insights regarding behaviour of Indian investors for responsible investments.

scholarly journals Recent Innovations in Socially Responsible Investing (SRI): The Role of “Socially Responsible Bonds” in Spurring Sustainable Development

2018 ◽  
Vol 19 (1) ◽  
pp. 27-47
Author(s):  
Hannah Jun ◽  
Hyojin Kim ◽  
Songhee Han
Keyword(s):  
Sustainable Development ◽  
Social Impact ◽  
Potential Role ◽  
Social Issues ◽  
Socially Responsible Investing ◽  
Investment Strategies ◽  
Socially Responsible ◽  
Responsible Investing ◽  
Social Impact Bonds

While it has become clear that the global community needs to utilize partnerships between the public and private sectors to achieve broader economic and development goals, there has been less discussion about the potential role of investors in shaping and participating in this movement. Part of this may be due to familiarity with traditional methods such as official development assistance (ODA) and relatively less understanding about recent innovations in socially responsible investing (SRI), including social impact bonds and development impact bonds. As economies like Korea have begun to show greater interest in harnessing various investment strategies to achieve broader social goals, we find it critical to better understand what financial tools are available within the context of encouraging sustainable development. As such, this paper highlights the potential role investors can play in contributing to broader social issues both at home and abroad through an examination of recent innovations in SRI – specifically, the category of so-called “socially responsible bonds.”

Socially Responsible Investment (SRI)

2018 ◽  
pp. 74-152
Keyword(s):  
Venture Capital ◽  
Social Impact ◽  
Socially Responsible Investment ◽  
Third Party ◽  
Corporate Management ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Social Venture ◽  
Social Venture Capital ◽  
Consumer Boycotts

The most common forms to align financial investments with ethical, moral, and social considerations are screenings, shareholder advocacy, community investing, and social venture capital funding. Screenings integrate the evaluation of corporate financial and social performances into portfolio selections. Positive screenings target corporations with sound social and environmental responsibility. Negative screenings exclude entities featuring morally and ethically irresponsible corporate conduct. Shareholder advocacy is the active engagement of shareholders in the corporate management by voting, activism, and dialogue. The majority of shareholders exercise their voting rights by proxy resolutions, in which a third party has the right to advocate for the shareholders before the corporate board. Negative shareholder activism comprises political lobbying, consumer boycotts, stakeholder confrontation, and negative publicity. Community investing describe ear-marks of investment funds for community development, but also features access to financial products and services to un(der)served communities. Social venture capital supports pro-social start-ups and social entrepreneurs for the greater goal of increasing the social impact of financial markets. This chapter explores socially responsible investment.

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