RAM Sustainability assigns highest environmental benefit ranking to Gopeng Berhad’s large-scale solar photovoltaic plant in Gopeng

Published on 19 Nov 2024.

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RAM Sustainability has completed an external review of GBS Green Sdn Bhd’s (GBS Green or the Issuer) ASEAN Green SRI Sukuk Wakalah Programme Sustainability Framework (the Framework) and accorded a Tier-1 Environmental Benefit (EB) ranking to Gopeng Berhad’s (Gopeng) 50 MWac Large Scale Solar Photovoltaic Plant in Gopeng, Perak – the project underlying Tranche 1 of the sukuk programme (Tranche 1 Project). The tier ranking reflects the climate change mitigation benefits of such energy systems. The Tranche 1 Project is an eligible project under the solar renewable energy project category.

GBS Green is a special-purpose vehicle incorporated to act as a funding conduit to raise funds for renewable energy projects undertaken by Gopeng and/or its subsidiaries. With proceeds of Tranche 1, GBS Green will make an advance of RM180.0 million to GBS Suria Sdn Bhd (GBS Suria) via intercompany financing to partly settle the amount owed by GBS Suria to Sunway Construction Sdn Bhd under the engineering, procurement and construction contract for the Tranche 1 Project.

We have also assigned an EB Tier-3 ranking to the other eligible renewable energy projects under the Framework (Table 1).

Our opinion of the Framework concludes that it has an Aligned level of disclosure when assessed against Securities Commission Malaysia’s Sustainable and Responsible Investment Sukuk Framework, the ASEAN Capital Market Forum’s ASEAN Green Bond Standards and the International Capital Market Association’s Green Bond Principles. We have assigned an overall Silver Sustainable Finance Rating to the Issuer’s Sustainability Framework. 

Gopeng is a public listed company primarily involved in the cultivation of Malaysian Sustainable Palm Oil-certified oil palm. The company was established in 1983 to take over the alluvial tin mining business of Gopeng Consolidated Plc. The land previously mined for tin makes up 73% of Gopeng’s 1,434 ha oil palm plantation landbank. In 2010, Gopeng sold its 35.16% equity stake in Perak Hanjoong Simen Sdn Bhd, the second largest integrated cement producer in Malaysia. The company has developed 328 acres of housing and commercial properties in the town of Gopeng. Its diversification into renewable energy began in 2021 with the Tranche 1 Project.

 

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

Raz Amira Razlan
(603) 3385 2553
raz@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. It is also not a credit assessment on the proposed Green, Social or Sustainability Bonds/Sukuk.

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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