RAM Sustainability assigns Tier-2 environmental benefit rating to Exio Logistics’ proposed green logistic hubs in City of Elmina

Published on 25 Apr 2024.

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RAM Sustainability after an external review (also known as a second opinion) of Exio Logistics Sdn Bhd’s (Exio or the Issuer) ASEAN Green Medium Term Notes (ASEAN Green MTN) Framework (the Framework) has assigned a Tier-2 Environmental Benefit (EB) rating to its green building eligible projects.

Exio is a joint venture of IJM RE Sdn Bhd – a wholly owned subsidiary of IJM Corporation Berhad – and FMM Elmina Sdn Bhd, which is owned by a consortium of private investors and was established to construct and develop two green logistic hubs in City of Elmina, Shah Alam that are expected to achieve Leadership in Energy and Environmental Design (LEED) Gold and Green Building Index (GBI) Silver certifications.

Proceeds from the proposed ASEAN Green MTN programme of up to RM500 million will be used to partially finance the project cost of the green logistic hubs, including the acquisition of freehold industrial land, the construction cost (including related green or sustainability consultancy fees) and the cost of the procurement, installation and setup of an Automated Storage and Retrieval System (ASRS).

The assigned Tier-2 EB rating is driven by the strong climate mitigation potential and expected environmental benefits of the logistic hubs. The state-of-the-art hubs will be equipped with green features such as a solar photovoltaic (PV) energy system, rainwater harvesting system and an ASRS.

The logistic hubs are modelled to be 24% more energy efficient than the baseline as per the ASHRAE 90.11 provisions, with the solar PV system projected to supply 12% of the buildings’ total required energy annually. Overall, the hubs are designed to operate with a Building Energy Intensity (BEI) of about 110 kWh/m2/year, making them 19% more energy efficient than the recommended BEI of 135 kWh/m2/year for commercial buildings in the Malaysian Standard MS1525:2014 - Energy Efficiency and Use of Renewable Energy for Non-Residential Buildings. 

RAM Sustainability concludes that the Framework is aligned with the disclosure requirements of the ASEAN Green Bond Standards and Green Bond Principles (GBP). It is also aligned with all core areas and nine out of 19 recommendations in 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 (ESG) 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 ESG 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.

American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Standard 90.1-2022 – Energy Standard for Sites and Buildings Except Low-Rise Residential Buildings


Analytical contact
Amirah Jamil

Media Contact
Sakinah Arifin


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 2024 by RAM Sustainability Sdn Bhd

Publication Date Published Category
Exio Logistics Sdn Bhd ASEAN Green MTN Framework 25-Apr-2024 Green Bond/Second Opinion Report View PDF