Kuala Lumpur – RHB Banking Group is now offering its pioneering Islamic Structured Investment Linked to Index to institutional investors, further expanding and integrating sustainability-related Shariah investment options for its clients.
Islamic SILX is a Shariah-compliant and principal-protected structured investment product primarily based on the Islamic concepts of Musawamah, Wa’d, Commodity Murabahah, and Wakalah to deliver principal protection and returns.
This facility provides investors access to global multi-asset classes and investment strategies tied to the underlying performance of a reference index, with maturity of between three to seven years.
Through the Islamic SILX, institutional investors can benefit from portfolio diversification which includes proprietary multi-asset indices with ESG considerations, foreign exchange, commodities, and other global indices, in addition to traditional cash assets such as equities and fixed income.
There is a wider and more pronounced shift in the investing environment, particularly bringing into focus the various opportunities that lie within the convergence of Shariah and ESG investing, the bank says in a media release today.
Islamic SILX leverages on strong growth potential and provides investors new avenues to invest in Shariah Compliant Structured Investments that include investments with positive ESG impact and in line with various global standards.
RHB’s Islamic SILX product framework allows us to quickly structure treasury solutions combining ESG and Shariah considerations to meet the needs of our more sophisticated clients.
This new offering reflects the growing capabilities of the bank within the Islamic Structured Investments space, reaffirming our commitment to build a more sustainable investing environment.
"Through RHB’s Islamic SILX, we are able to further invigorate conventional strategies and guide investors towards the most optimal risk-reward decisions by bringing together Shariah and ESG investing,” said Angus Salim Amran, Group Treasurer of RHB Banking Group," the bank says.
The Group’s first Islamic SILX further expands the wide variety of solutions offered by RHB’s Group Treasury & Global Markets, which includes investment solutions as well as financial risk management solutions covering interest rate, foreign exchange, and commodities price risks.
RHB’s Islamic SILX follows the Group’s structuring of Malaysia’s first ESG-linked Cross Currency Interest Rate Swap, which solidifies RHB’s continuous support of the country’s aspiration towards a low-carbon and climate-resilient economy.