RAM Sustainability completes external review of reNIKOLA’s Green Financing Framework, the first to align to SRI and ASEAN taxonomies

Published on 04 Aug 2023.

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On completing an external review (also known as second opinion) of reNIKOLA Holdings Sdn Bhd’s (reNIKOLA) Green Financing Framework (the Framework), RAM Sustainability Sdn Bhd (RAM Sustainability) has assigned a Tier-1 Environmental Benefit (EB) rating to its solar and bioenergy eligible activities, and a Tier-1 to Tier-2 EB rating to its hydropower eligible activity. 

reNIKOLA is a pure-play renewable energy producer. The Group presently develops, operates and maintains large-scale solar and bioenergy plants, generating a stable cash flow through green electricity supplied to Tenaga Nasional Berhad and other corporate customers. 

The Framework was first utilised for reNIKOLA Solar II Sdn Bhd’s (reNIKOLA II or the Issuer) issuance of Islamic Medium Term Notes (ASEAN Green SRI Sukuk or Green Sukuk) of up to RM390 million to refinance the development costs of two 30 MWac solar photovoltaic plants located in Kuala Muda, Kedah and Machang, Kelantan. The Green Sukuk gained Climate Bonds Certification under the Climate Bonds Standard on 28 July 2023 – making it the first climate-certified sukuk in Malaysia and the world – and stands as a testament to reNIKOLA’s commitment to climate alignment in line with the Paris Agreement. The climate-certified sukuk also carries a preliminary credit rating of AA2/Stable assigned by RAM Rating Services Berhad.

reNIKOLA is also the first entity in Malaysia to claim alignment to the Sustainable and Responsible Investment (SRI) and ASEAN taxonomies for its eligible renewable energy activities. The alignment has been reviewed by RAM Sustainability. reNIKOLA’s eligible activities can be classified as Green under the taxonomies, save for some ambiguity in the type of hydropower to be financed which may be classified as Amber under the SRI Taxonomy. reNIKOLA has included the technical screening criteria for hydropower and bioenergy activities recommended by the ASEAN Taxonomy Plus Standard. This demonstrates its commitment to apply best practices in the determination of eligibility for green financing and climate alignment.



We conclude that the Framework is aligned with the disclosure requirements of the SRI Sukuk Framework, ASEAN Green Bond Standards, Green Bond Principles and Green Loan Principles. The Framework is also aligned with all core areas and 16 out of 20 recommendations under the latest pre-issuance checklist of the Green Bond Principles, published on 22 June 2023. 

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, RAM 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
Darrel Tiang

Intan Aasyeerin


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
reNIKOLA Holdings Sdn Bhd Green Financing Framework 04-Aug-2023 Green Bond/Second Opinion Report View PDF