RAM Sustainability assigns environmental and social benefit ratings to Pengurusan Air SPV’s Sustainability Sukuk

Published on 28 Apr 2022.

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RAM Sustainability Sdn Bhd (RAM Sustainability) has assigned a Tier-1 Environmental Benefit (EB) rating and Tier-2 Social Benefit (SB) rating to the eligible asset/project under Pengurusan Air SPV Berhad’s (PASB or the Issuer) Sustainability Sukuk Framework (see Table 1). The Sustainability Sukuk is to be issued under PASB’s RM2.0 billion Islamic Commercial Papers Programme.

Proceeds from the Sustainability Sukuk will be used to finance or refinance Pengurusan Aset Air Berhad's (PAAB) acquisition of existing water assets – pipe networks, reservoirs, plant and machinery, dams, land, buildings and structures – and capital expenditure relating to the assets. PASB is the financing conduit and 100%-owned subsidiary of PAAB, the national water asset company mandated to facilitate the water restructuring exercise in Peninsular Malaysia and the Federal Territory of Labuan under the Water Services Industry Act 2006. PAAB is also tasked with developing and financing water infrastructure in these areas.

“We believe PASB’s Sustainability Sukuk will create a positive social and environmental impact by financing projects and solutions crucial for an efficient water services sector as well as the broader national sustainable development agenda,” said Gladys Chua, RAM Sustainability’s head of sustainability services.

RAM Sustainability’s second opinion on PASB’s Sustainability Framework concludes that the Framework is aligned in our view to the basic 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. The debt instrument also carries credit ratings assigned by RAM Rating Services Berhad.

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
Jason Lee


Publication Date Published Category
Pengurusan Air SPV Berhad Sustainability Sukuk 28-Apr-2022 Green Bond/Second Opinion Report View PDF