SEP Resources’ Pesona ASEAN Sustainability SRI Sukuk Wakalah Framework Has Strong Disclosure Level

Published on 24 Jul 2024.

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RAM Sustainability has completed the external review of SEP Resources (M) Sdn Bhd’s (SEP or the Issuer) Pesona ASEAN Sustainability SRI Sukuk Wakalah Framework (the Framework) and concluded that it has a Strong level of disclosure, in line with relevant green, social and sustainability bond standards and guidelines.

SEP is tasked with undertaking the proposed issuance of Islamic Medium-Term Notes (IMTN) of up to RM185 million in nominal value (ASEAN Sustainability SRI Sukuk Wakalah or the Sustainability Sukuk). Part of the Sustainability Sukuk proceeds will be utilised for the early redemption of all outstanding amounts of SEP’s IMTN of RM150.0 million in nominal value, which was originally utilised to part-finance an eligible project under its subsidiary, Budaya Positif Sdn Bhd (BPSB).

BPSB holds the concession to undertake the design, construction, development and maintenance of a student hostel on Universiti Malaysia Perlis’ (UniMAP) Pauh Putra campus in Arau under a concession agreement with UniMAP and the Government of Malaysia via the Ministry of Higher Education. The student hostel underlying the Sustainability Sukuk, namely Kolej Kediaman Tuanku Tengku Fauziah, is one of six hostels on the campus and can house up to 4,000 students. It includes common facilities such as a multipurpose hall, cafeteria, prayer hall and self-service washing area. This is an eligible project under the Access to Essential Services project category. 

SEP has identified potential eligible ongoing green building projects in Pesona Metro Holdings Berhad’s (PMHB) order book and may identify other social projects for the utilisation of the remainder of the Sustainability Sukuk proceeds. We have assigned Environmental Benefit (EB) and Social Benefit (SB) ratings to the eligible projects under the Framework (Table 1).

 

SEP is an investment holding company that is 70%-owned by PMHB, a public-listed construction-focused group. BPSB is SEP’s sole subsidiary and is principally engaged in facilities development through private finance initiatives.

Analytical contact
Amirah Jamil
(603) 3385 2551
amirah@ram.com.my

Media contact
Sakinah Arifin
(603) 3385 2500
sakinah@ram.com.my

 

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.

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