Bank Islam Introduces Ihsan Sustainability Investment Account

Alex Cheong Pui Yin

8th January 2024 - 2 min read

Bank Islam has officially rolled out its new Ihsan Sustainability Investment Account (ISIA), which allows customers to invest in assets that can deliver positive social and environment impact. With a projected return of 4.5% p.a. and a tenure of 24 months, it is specifically designed for high-income and non-individual investors who seek stable short-term investment opportunities with moderate risk.

According to Bank Islam, the ISIA offers access to a range of non-retail assets that are relevant to the theme of environmental, social, and governance (ESG) as well as sustainable development goals (SDG). These include renewable energy, green financing, clean transportation, as well as clean water and sanitation.

In doing so, ISIA is meant to support the United Nations Sustainable Development Goals objectives, as well as Bank Negara Malaysia’s climate change and principle-based taxonomy. Bank Islam further said that it has established a rigorous underlying framework to guide its new product, based on thorough due diligence, comprehensive impact assessment, and continuous monitoring of the fund.

Aside from that, the bank also highlighted that the ISIA comes with a special feature, where 2.50% of your investment return will be channelled either to the Pusat Pungutan Zakat Majlis Agama Islam Wilayah Persekutuan or the Bank Islam Sadaqa House. This serves as a form of social impact contribution.

If you’re interested in checking out Bank Islam’s new ISIA, note that the minimum investment amount for individual investors is set at RM50,000, whereas non-individual investors will need to start with RM1 million. Meanwhile, profit will be distributed semi-annually and within the investment tenure of 24 months. There is also a stamp duty charge of RM10 for the indemnity letter if you would like to replace a lost or destroyed investment certificate; otherwise, the wakalah fee for ISIA is waived.

Group chief executive officer of Bank Islam, Datuk Mohd Muazzam Mohamed said that the introduction of ISIA reflects the bank’s commitment to bring prosperity to all parties. “Through ISIA, we enable investors to join us in shaping a nature-positive economy by venturing into Islamic finance potentials,” he said.

(Sources: Bank Islam, Malay Mail)

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Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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