KUALA LUMPUR, June 20 (Bernama) — CIMB Islamic Bank Berhad (“CIMB Islamic”) announced today that it has entered into an RM1.0 billion landmark Sustainable Collateralised Commodity Murabahah (“CCM”) transaction with Standard Chartered Saadiq Malaysia, further enhancing its market leadership position in sustainable finance, as well as Islamic treasury and capital markets.
CCM is a Shariah-compliant financial instrument to obtain efficient funding secured by high quality Islamic sukuk assets. The development of liquid secured funding on sukuk has been historically challenged by the inability to have efficient counterparty risk management features, as well as collateral substitution flexibility. With the CCM, the Islamic financial market is provided with a viable alternative to the conventional Repurchase/Reverse-Repurchase Agreements (Repo/Reverse Repo).
