RAM Sustainability assigns highest environmental benefit rating to RP Hydro (Kelantan)’s ASEAN Green SRI Sukuk Wakalah

Published on 21 Feb 2023.

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RAM Sustainability has assigned a Tier-1 Environmental Benefit (EB) rating to RP Hydro (Kelantan) Sdn Bhd’s (RPHK or the Issuer) RM975 million ASEAN Green SRI Sukuk Wakalah (the Sukuk). This instrument also carries credit ratings assigned by RAM Ratings. 

The Sukuk will be used to part finance costs related to the development, construction, operation and maintenance of three small hydropower plants (the Project), with a total installed capacity of 84 MW, along the Galas River in Dabong, Kelantan, Malaysia and to defray ancillary costs. The Tier-1 EB rating assigned to the Sukuk reflects the Project’s significant net contribution to climate change mitigation. Expected to commence operations in December 2025, the Project will generate approximately 485 GWh of clean renewable energy per year throughout the tenure of the Sukuk.

RAM Sustainability’s external review (also known as second opinion) of the Sukuk’s Framework (the Framework) also concludes that it meets the disclosure requirements of Securities Commission Malaysia’s Sustainable & Responsible Investment Sukuk Framework, the ASEAN Green Bond Standards and the globally recognised Green Bond Principles (GBP). The Framework is aligned with all core areas and 11 out of 18 applicable recommendations under the latest pre-issuance checklist of the GBP, published on 28 June 2022. 

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’s Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines in the ASEAN region. 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
Amirah Jamil


This external review or 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 2023 by RAM Sustainability Sdn Bhd

Publication Date Published Category
RP Hydro (Kelantan) Sdn Bhd ASEAN Green Sri Sukuk Wakalah Framework 21-Feb-2023 Green Bond/Second Opinion Report View PDF