RAM Sustainability assigns Silver Sustainable Finance Rating to Visionary Heritage’s Secured Green Collateral Sukuk Framework

Published on 23 Apr 2025.

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RAM Sustainability has completed the second-party opinion of Visionary Heritage Berhad’s (VHB or the Issuer) Secured Green Collateral Sukuk Framework (the Framework) and accorded it a Silver Sustainable Finance Rating.

We conclude that the Framework has an Aligned disclosure level 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.

VHB will issue Islamic medium-term notes under a multi-currency asset-backed Islamic medium-term notes programme of RM2.0 billion in nominal value or its equivalent in other currencies (the Sukuk Programme). The Issuer may issue Green Sukuk Wakalah (Green Sukuk) under the Sukuk Programme to purchase through a formal tender process or any other channels for new, existing and/or refurbished buildings that are green-certified or to be certified green (Green Properties). ISP Holding Sdn Bhd (ISPH) serves as the promoter or sponsor of the Sukuk Programme while ISP Asset Management Sdn Bhd (ISPAM) is the servicer (collectively, ISP Group or the Group). The Green Sukuk will be classified as a Secured Green Collateral Sukuk as it will be securitised against the Green Properties.

The green building project category is viewed to contribute to a range of possible positive net environmental impacts resulting from the likely range of green building certifications to be pursued by VHB, for which we have assigned an Environmental Benefit tier ranking of Tier-1 to Tier-3. According to the Group, it targets a minimum Bronze green building certification for all its logistics warehouses & manufacturing hubs (LWMH) and purpose-built workers’ accommodations (PBWA).

For the first issuance of the Green Sukuk, the proceeds will be utilised by VHB, among others, to finance the acquisition of six blocks of industrial warehouses in Johor, Malaysia (collectively, the FMC Warehouse). The FMC Warehouse attained its Silver GreenRE green building certification on 15 April 2025. VHB intends to gain recertification every three years to maintain the sustainability performance of its Green Properties and improve their GreenRE certification level to Gold.

ISP Group focuses on the development and investment of industrial property such as LWMH and PBWA. The PBWA comply with the Workers’ Minimum Standards of Housing and Amenities (Amendment) Act 2019 (Act 446) and are certified by the Peninsular Malaysia Department of Labour, ensuring alignment with Responsible Business Alliance standards.

In terms of sustainability governance and practices, VHB and ISPH are in the early stage of integrating Environmental, Social and Governance considerations into their businesses.

VHB is an independent bankruptcy-remote special-purpose vehicle wholly owned by a share trustee established to undertake the securitisation exercise via the Sukuk Programme, which involves acquiring, from time to time, the rights, title and interest in eligible LWMH and PBWA.

 

Analytical contacts
Raz Amira Razlan
(603) 3385 2553
raz@ram.com.my

Amirah Jamil
(603) 2708 8294
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, in as much 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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