RAM Sustainability assigns inaugural Platinum sustainable finance rating to Pengurusan Aset Air’s Sustainable Islamic Finance Framework – first to include Blue Financing in Malaysia

Published on 18 Mar 2026.

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RAM Sustainability has assigned Pengurusan Aset Air Berhad’s (PAAB or the Issuer) Sustainable Islamic Finance Framework (the Framework) its inaugural Platinum Sustainable Finance Rating following a second-party opinion assessment.

The rating is underscored by the eligible projects’ strong alignment with environmental and social objectives. All eligible project categories received a Tier-1 Environmental Benefit ranking, indicating an expected significant contribution to environmental and social outcomes. Eligible project categories include Sustainable Water and Wastewater Management, Terrestrial/Aquatic Biodiversity Conservation, Climate Change Adaptation, Renewable Energy, Green Buildings, and Affordable Basic Infrastructure. These categories are aligned with PAAB’s sustainability strategy and national agenda, primarily the Water Sector Transformation 2040 (WST 2040) roadmap to strengthen Malaysia’s water security and sustainability.

Projects under the Sustainable Water and Wastewater Management, Terrestrial/Aquatic Biodiversity Conservation and Climate Change Adaptation categories qualify as blue projects, i.e., green projects that support a sustainable blue economy and ocean health. These projects are aligned with the International Capital Market Association’s Bonds to Finance the Sustainable Blue Economy – A Practitioner’s Guide and the International Finance Corporation’s Guidelines for Blue Finance Version 2.0, representing the first instance of blue financing in Malaysia.

PAAB’s sustainability governance and management – overseen by its Board of Directors – is viewed as robust. Aligned with the United Nations 2030 Agenda for Sustainable Development and the Paris Agreement, PAAB’s sustainability strategy is supported by a comprehensive Sustainability Policy and related environmental, social and governance policies. The Issuer is certified under the ISO 9001:2015 - Quality Management System and ISO 37001:2016 - Anti-Bribery Management System.

In the near term, PAAB plans to issue Islamic commercial papers under its existing Islamic commercial papers programme of up to RM2.0 bil in nominal value (the Sukuk Programme) to finance ongoing and future water-related projects.

PAAB is Malaysia’s national water asset company, mandated to finance and develop water assets and infrastructure in Peninsular Malaysia and Labuan. In 2022, a Sustainability Sukuk Framework was established under special-purpose vehicle Pengurusan Air SPV Berhad (PASB), for issuances under the Sukuk Programme. The current Framework updates and supersedes PASB’s Sustainability Sukuk Framework.

PAAB plays a core enabling role in WST 2040, with projects totalling RM7.62 bil in its current pipeline aligned with the initiative. The Issuer is also a key driver of the National Non-Revenue Water (NRW) Programme led by the Ministry of Energy Transition and Water Transformation, which targets a reduction in NRW to 28.8% by 2030 (2024: 34.3%). PAAB estimates capital expenditure of RM1.4 bil for this programme between 2026 and 2030.

 

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

Nathania Wei
(603) 2708 8291
nathania@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my

 

This external review or second-party 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 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. For further details, please refer to https://www.ram.com.my/sustainability.

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