RAM Sustainability assigns environmental and social benefit ratings to Cagamas’ Proposed ASEAN Sustainability Bonds/SRI Sukuk

Published on 21 Sep 2020.

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RAM Sustainability Sdn Bhd (RAM Sustainability) has assigned Environmental Benefit (EB) ratings to the Proposed ASEAN Sustainability Bonds/SRI Sukuk to be issued under Cagamas Berhad’s (Cagamas or the Issuer) RM60 billion MTN & IMTN Programme. Five green solutions within Cagamas’ Sustainability Bonds/Sukuk Framework (the Framework) – namely renewable energy, energy efficiency, green buildings, low-carbon transportation, sustainable water and wastewater management – have been assigned EB ratings. At the same time, RAM Sustainability has also assigned Social Benefit (SB) ratings to social solutions under the Framework.

Renewable energy and energy efficiency solutions prescribed by the Framework carry the highest EB ratings of Tier-1, reflecting their role in substantially decarbonising the energy system and providing broader environmental benefits. Meanwhile, the Tier-1 SB ratings assigned to Cagamas’ affordable housing and employment generation via SME solutions underpin the Issuer’s strategic function as a national institution supporting social benefits at the national level, on a potentially significant scale, depth and duration.

“Cagamas’ role in supporting the financial system is even more crucial now as the nation adjusts to the impact of COVID-19. It is especially important to support sustainable economic recovery going forward through the Proposed Sustainability Bonds/Sukuk that will benefit both the society and the environment,” said RAM Sustainability’s head of sustainability services, Gladys Chua.

RAM Sustainability’s second opinion on the Framework concludes that it provides clarity on important aspects such as the intended use of proceeds, project evaluation and selection, management of proceeds and reporting commitments. The Framework is aligned with the transparency and disclosure requirements of Securities Commission Malaysia’s Sustainable & Responsible Investment (SRI) Sukuk Framework, the ASEAN Green Bond Standards, the ASEAN Social Bond Standards, the ASEAN Sustainability Bond Standards and the globally recognised Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines. In our view, Cagamas’ Proposed Sustainability Bonds/SRI Sukuk will create a positive environmental and social impact by financing projects and solutions that are essential for a sustainable future. This instrument also carries credit ratings assigned by RAM Rating Services.

RAM Sustainability is a provider of sustainability services and Environmental, Social and Governance (ESG) analytics. Incorporated on 31 May 2000, it is a wholly owned subsidiary of RAM Holdings Berhad. RAM Sustainability is the first ASEAN-based provider of sustainability ratings and second opinions and has the distinction of being the first Registered Observer of the International Capital Market Associations’ Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines in ASEAN. On 12 August 2020, we became an Approved Verifier for the certification of climate bonds under the Climate Bonds Standard & Certification Scheme after having been awarded the status by the Climate Bonds Standards Board. For further details, please refer to https://www.ram.com.my/sustainability.


Analytical contact
Gladys Chua
(603) 3385 2611

Media contact
Padthma Subbiah
(603) 3385 2577


The second opinion is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for an investor, nor does it involve any audit by RAM Sustainability.

Published by RAM Sustainability Sdn Bhd
© Copyright 2020 by RAM Sustainability Sdn Bhd

Publication Date Published Category
Cagamas Berhad Asean Sustainability Bonds/Sri Sukuk 21-Sep-2020 Green Bond/Second Opinion Report View PDF