RAM Sustainability: Hong Leong Bank

Published on 07 Apr 2022.

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RAM Sustainability has assessed Hong Leong Bank Berhad’s (HLBB or the Issuer) Green Bond Framework (the Framework) to be aligned with the transparency and disclosure requirements of the ASEAN Green Bond Standards (GBS) and the globally recognised ICMA Green Bond Principles (GBP). Notably, we view HLBB’s Framework as having Intermediate level of disclosure, where it incorporates details that are in line with best practices.

The first tranche of the green bonds will be issued under HLBB’s Additional Tier 1 Capital Securities Programme of up to RM10.0 billion in nominal value to finance renewable energy, energy efficiency, green buildings, waste management, and electric and hybrid vehicles. HLBB is the fifth largest bank in Malaysia with a strong franchise in consumer and SME banking.

“We expect the development of the Framework by HLBB to support further growth of its green financing portfolio that will be climate-supportive as well,” said Gladys Chua, RAM Sustainability’s head of sustainability services. 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.

RAM Sustainability has also assigned Environmental Benefit (EB) ratings to the eligible assets or projects under HLBB’s Framework. All green asset or project categories under the Framework have been assigned EB ratings after taking into account the expected benefits to be derived from such funding.

Table 1: EB Ratings of HLBB’s eligible assets/projects

 

RAM Sustainability is a provider of sustainability services and Environment, Social and Governance 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. It also 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
Jean Sau
(603) 3385 2574
jeannie@ram.com.my