RAM Sustainability assigns Gold Sustainable Finance Rating to Perbadanan Bekalan Air Pulau Pinang’s Sustainable Finance Framework

Published on 08 Jul 2025.

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RAM Sustainability has completed the second-party opinion of Perbadanan Bekalan Air Pulau Pinang Sdn Bhd’s (PBAPP of the Issuer) Sustainable Finance Framework (the Framework) and accorded it a Gold Sustainable Finance Rating (SFR).

PBAPP is the licensed water supply operator for the state of Penang (or Pulau Pinang) in Malaysia, federally regulated by the National Water Services Commission. Proceeds from PBAPP’s green, social and sustainability bonds/sukuk/loans will be utilised by the Issuer for new and/or existing specific eligible investments, assets and projects under various eligible project categories.

The Gold SFR is driven by the strong alignment of the Framework with the transparency and disclosure requirements of relevant guidelines, PBAPP’s robust sustainability governance and management, and the expected contribution of its eligible projects to a range of positive net environmental and socio-economic impacts.

                      

Proceeds from the first issuance from the Sukuk Programme is expected to be utilised for eligible Sustainable Water Management projects. The eligible projects are the construction of the Mengkuang and Sungai Kerian water treatment plants and the laying of about 14 km of 1.8-m pipelines in Penang, with total projected investments of RM824 mil. The plants, upon expected completion in 2028, will provide the state with an additional 228 mil litres of treated water per day (MLD).

These projects are part of PBAPP’s Water Contingency Plan 2030, which lists eight projects to address the increase in Penang’s water consumption since 2019 and ensure sufficient water supply to the state until 2030, with a planned total additional capacity of 602 MLD and 17 km of laid pipelines. PBAPP’s eligible projects are aligned with its sustainability strategies as well as the Penang state government’s sustainability agenda. Considering PBAPP’s role as a state water operator, these projects will directly contribute to Penang’s continued water security and resilience.

We conclude that the Framework has a Strong disclosure level when assessed against relevant guidelines, i.e., Securities Commission Malaysia’s Sustainable and Responsible Investment Sukuk Framework, the ASEAN Capital Markets Forum’s ASEAN Sustainability Bond Standards, the International Capital Market Association’s Sustainability Bond Guidelines and the Loan Market Association’s Green Loan Principles and Social Loan Principles.

PBAPP is wholly owned by PBA Holdings Berhad which, in turn, is majority-held by the Penang government. In 2024, PBAPP served a total of 705,528 consumers, comprising 85.75% domestic, 13.67% non-domestic and 0.55% others. Penang’s population size is about 1.8 mil.

 

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

Raz Amira Razlan
(603) 2708 8295
raz@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, 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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