Amanat Lebuhraya Rakyat Berhad’s Sustainability Sukuk meets SRI, ASEAN and international guidelines

Published on 20 May 2022.

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RAM Sustainability’s second opinion on Amanat Lebuhraya Rakyat Berhad’s (ALR or the Issuer) Sustainability Sukuk Framework concludes that it is aligned to the disclosure requirements of Securities Commission Malaysia’s Sustainable & Responsible Investment (SRI) Sukuk Framework, the ASEAN Green Bond Standards, ASEAN Social Bond Standards, ASEAN Sustainability Bond Standards and the globally recognised International Capital Market Association Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines. 

We have assigned Social Benefit (SB) and Environmental Benefit (EB) ratings to eligible projects under ALR’s Sustainability Sukuk Framework (see Table 1). The Sustainability Sukuk (the Sukuk) is to be issued under ALR’s RM5.5 billion Sustainability Sukuk Programme, which also carries credit ratings assigned by RAM Ratings.

ALR is an entity established to acquire, with proceeds from the Sukuk, the Shah Alam Expressway, SPRINT Expressway, Damansara-Puchong Expressway and Stormwater Management and Road Tunnel. The Issuer’s highway restructuring exercise through the acquisitions will allow toll rates to be frozen for the tenure of the concessions. The Sukuk will also fund, to a lesser extent, other green solutions and social projects. 

“ALR’s Sustainability Sukuk is Malaysia’s first SRI Sukuk for highway infrastructure. The Sustainability Sukuk will ensure essential highway services remain affordable and accessible to about a million toll road users daily,” said Gladys Chua, RAM Sustainability’s head of sustainability services.

Table 1: The SB and EB ratings assigned to ALR’s eligible 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 Association 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, see https://www.ram.com.my/sustainability.  

 

Analytical contact
Lee Han Jie
hanjie@ram.com.my