Last Updated: 2017-10-12
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KUALA LUMPUR, Oct 12 (NNN-Bernama) -- Shariah-compliant sukuk is another great option to finance green technology investments in renewable energy and other environmental assets, said Energy, Green Technology and Water (KeTTHA) Minister, Maximus Johnity Ongkili.

He said the green technology industry would be further enhanced if the project financing were based on 'green sukuk'.

"Green sukuk, with roughly four per cent minimum return, is a cheap option that the players should consider, besides applying the Green Technology Financing Scheme (GTFS) for financing," he said at press conference on the sidelines of the 8th International Greentech and Eco Products Exhibition and Conference Malaysia (IGEM 2017) here.

Besides the popular solar energy sector which gives fairly stable income proceeds, Ongkili said Malaysia was expected to issue more green sukuk to finance environmental-friendly infrastructure projects in other areas such as mobility and waste including biomass and biogas.

The minister said the issuance of two green sukuk recently was a significant milestone in product innovation that strengthens Malaysia's position as a leading lslamic finance marketplace as well as its value proposition as a centre for sustainable finance.