RAM Sustainability assigns Gold Sustainable Finance Rating to FMM House’s ASEAN Green MTN Framework

Published on 09 Jun 2025.

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RAM Sustainability has completed the second-party opinion assessment of FMM House Sdn Bhd’s (FMM or the Issuer) ASEAN Green Medium-Term Notes (ASEAN Green MTN) Framework (the Framework) and accorded it a Gold Sustainable Finance Rating.

We conclude that the Framework has an Aligned disclosure level when assessed against the International Capital Market Association’s Green Bond Principles and the ASEAN Capital Market Forum’s ASEAN Green Bond Standards.

FMM will issue green bonds under its ASEAN Green MTN Programme with a nominal value of up to RM3.0 billion (the Programme). Proceeds of the first tranche of up to RM630 million to be issued under the Programme will be used to finance FMM’s subsidiary Jaroses Partner Sdn Bhd’s development of three green logistic hubs with an automated warehouse management system in Pulau Indah, Klang.

The eligible green building project category has been assigned a Tier-1 Environmental Benefit ranking in view of its strong climate mitigation potential. The Issuer is committed to achieving a minimum Gold or equivalent-level green building certification which is typically associated with better environmental performance, particularly in terms of energy performance and indoor environmental quality. FMM is also pursuing the RESET International Standard as a continuous monitoring tool to enhance its environmental performance.

In terms of sustainability governance and practices, FMM is in the early stages of integrating Environmental, Social and Governance (ESG) considerations into its businesses. That said, the Issuer has shown strong ESG commitment in the establishment of the Programme and other investments in green industrial properties throughout Malaysia, which is expected to contribute to the nation’s international competitiveness as a sustainable regional logistic hub.

FMM is an investment company, focusing on investing in companies involved in industrial property development, particularly properties featuring automation and green technologies. 

 

Analytical contacts
Cynthia Lim Sin Lu
(603) 2708 8293
cynthia@ram.com.my

Amirah Jamil
(603) 2708 8294
amirah@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
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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