RAM Sustainability completes external review of Eternal Icon’s proposed Secured Green Collateral Bond issuance – Malaysia’s first

Published on 24 Feb 2023.

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Eternal Icon Sdn Bhd’s (EISB or the Issuer) proposed issuance of ASEAN Green Medium Term Notes (ASEAN Green MTNs) is Malaysia’s first secured green collateral bond facility, securitised against Plaza33, a multilevel green commercial building located in Petaling Jaya, Selangor.

RAM Sustainability has completed an external review (also known as second opinion) of EISB’s Secured Green Collateral Bond Framework (the Framework) and assigned a Tier-3 Environmental Benefit (EB) rating to the ASEAN Green MTNs pursuant to the MTN programme of up to RM400.0 million to refinance RM86.0 million of outstanding senior MTNs and RM253.7 million of subordinated MTNs utilised for Plaza33’s securitisation. Subsequent issuances will be used to refinance any MTNs and for working capital purposes and/or to finance any capital expenditure on Plaza33.

Plaza33 achieved Gold certification in May 2022 under the Leadership in Energy and Environmental Design (LEED) for Operations and Maintenance: Existing Buildings rating system, which allows previously less environmentally efficient buildings to be certified subsequent to improvement work. The Tier-3 EB rating assigned to the ASEAN Green MTNs reflects Plaza33’s contribution to climate change mitigation, albeit limited, given that it is 10% more energy efficient than the average Malaysian office building.

“This maiden issuance is a major milestone in Malaysia towards encouraging more asset-backed securitisation involving green, social or sustainable assets in the future, not limited to just the property sector,” said Gladys Chua, CEO of RAM Sustainability. 

RAM Sustainability concludes that the Framework is aligned with the disclosure requirements of the ASEAN Green Bond Standards and the globally recognised International Capital Market Association Green Bond Principles (GBP). The Framework is also aligned with all core areas and 11 out of 19 recommendations under the latest pre-issuance checklist of the GBP, published on 28 June 2022. The senior ASEAN Green MTNs also carry a preliminary credit rating of AAA assigned by RAM Ratings.

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 GBP, 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 contacts
Amirah Jamil

Cynthia Lim


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
Eternal Icon Sdn Bhd Secured Green Collateral Bond Framework 24-Feb-2023 Green Bond/Second Opinion Report View PDF