RAM Sustainability: Avaland’s Sustainability Sukuk Framework meets green and sustainability guidelines

Published on 24 Jun 2024.

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RAM Sustainability views Avaland Berhad’s (Avaland or the Company) Sustainability Sukuk Framework (the Framework) to be Aligned with the transparency and disclosure requirements of recognised green and sustainability guidelines. Formerly known as MCT Berhad, Avaland is a real estate company primarily involved in the development of commercial and residential properties. Its majority shareholder, Ayala Land Inc., is a real estate firm in the Philippines.

RAM Sustainability classifies green, social or sustainability bond frameworks as Weak, Aligned, Strong or Advanced in comparison to applicable regulations and guidelines or best practices.

Avaland is guided by the four Sustainability Focus Areas in its Sustainability Framework as well as its internal Project Green Plan (PGP) which guides the development of high-rise residential projects under its three product categories, namely, AVA Luxe, AVA Prime and AVA Ria. These product segments target the luxury, premium and affordable markets, respectively. The PGP is aligned to the GreenRE standard – a green building certification tool of Malaysia’s Real Estate and Housing Developers Association – ensuring Avaland’s developments meet the Company’s green building certification targets and, subsequently, are eligible projects under the Framework. 

In forming its opinion, RAM Sustainability considered the proposed utilisation of proceeds from Avaland’s planned issuance of Green, Social or Sustainability Sukuk under a proposed Islamic Medium Term Notes Programme of up to RM1.0 billion in nominal value. Factors taken into account include the use of funds for the development of green buildings, sustainable management of living natural resources, renewable energy and affordable housing. Avaland has identified three projects – Aetas Seputeh, Amika and Anja Bangi – to be funded by an immediate issuance. These are eligible projects under the Green Building project category as outlined in the Framework. We have assigned Environmental Benefit (EB) and Social Benefit (SB) ratings to the eligible projects under the Framework (Table 1).


Table 1: EB and SB ratings assigned to Avaland’s eligible projects.


Analytical contacts
Amirah Jamil
(603) 3385 2551

Joel Thum
(603) 3385 2517

Media contact
Sakinah Arifin
(603) 3385 2500


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. 

About RAM Sustainability

RAM Sustainability Sdn Bhd (RAM Sustainability) is a provider of sustainability services and 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 ESG ratings and second opinions and has the distinction of being the first Registered Observer of ICMA’s Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines and Sustainability-Linked Bond Principles in ASEAN. It was a member of ICMA’s Advisory Council to the Green Bond Principle and Social Bond Principle Executive Committee for three consecutive terms. On 12 August 2020, RAM Sustainability 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, please refer to https://www.ram.com.my/sustainability.

Published by RAM Sustainability Sdn Bhd

© Copyright 2024 by RAM Sustainability Sdn Bhd

Publication Date Published Category
Avaland Berhad Sustainability Sukuk Framework 24-Jun-2024 Green Bond/Second Opinion Report View PDF