RAM Sustainability independently verifies Malaysia & world’s first Certified Climate Sukuk to be issued by reNIKOLA Solar II

Published on 04 Aug 2023.

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RAM Sustainability Sdn Bhd (RAM Sustainability) has independently verified reNIKOLA Solar II Sdn Bhd’s (reNIKOLA Solar II) ASEAN Green SRI Sukuk of up to RM390 million against the pre-issuance requirements under the Climate Bonds Standard, which led to the pre-issuance certification on 28 July 2023 by the Climate Bonds Standard Board, making it the first Certified Climate Sukuk in Malaysia and the world. 

“The Certified Climate Sukuk is an endorsement that the financing facility is aligned towards meeting the 1.5° pathway outlined in the Paris Agreement. This transaction by reNIKOLA marks a major milestone for Malaysia’s sustainable finance market in encouraging more climate-aligned financing in the future,” said Gladys Chua, CEO of RAM Sustainability. “The certification is also a testament to reNIKOLA’s commitment to Malaysia’s energy transition and we are delighted to have supported them in this significant transaction,” she added.

The proceeds will be utilised to part refinance the project costs of two 30 MWac solar plants located in Machang, Kelantan and Kuala Muda, Kedah. reNIKOLA Solar II is a subsidiary of reNIKOLA Holdings Sdn Bhd (the Group), a pure-play renewable energy producer. The use of proceeds by reNIKOLA Solar II is in line with the Group’s Green Financing Framework which has been externally reviewed by RAM Sustainability. The Certified Climate Sukuk also carries a preliminary credit rating of AA2/Stable assigned by RAM Rating Services Berhad.

The Climate Bonds Standard is an overarching science-based, multi-sector certification scheme launched by the Climate Bonds Initiative, a non-profit organisation working to mobilise the USD100 trillion worth of climate-compatible infrastructure required between now and 2030 to meet Paris Agreement emissions reduction targets. Consistent with the goals of the Paris Agreement, the scheme focuses on the certification of debt instruments that address the challenge of climate change to enhance investor confidence and support investment decisions. 

RAM Sustainability is a provider of sustainability services and environment, social and governance (ESG) analytics. Incorporated on 31 May 2000, RAM Sustainability is a wholly owned subsidiary of RAM Holdings Berhad (RAM Group). RAM Sustainability is the first ASEAN-based provider of sustainability ratings and second opinions, and has the distinction of being the first Registered Observer of the International Capital Market Associations’ (ICMA) Green Bond Principles (GBP), Social Bond Principles (SBP) and Sustainability Bond Guidelines in ASEAN. On 12 August 2020, RAM Sustainability became an Approved Verifier for the certification of climate bonds under the Climate Bonds Standard and 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 contacts

Darrel Tiang
darrel@ram.com.my

Intan Aasyeerin
aasyeerin@ram.com.my

 

This Pre-Issuance Verification 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.

Published by RAM Sustainability Sdn Bhd 

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