KUCHING: RAM Sustainability has assigned a Tier-1 Environmental Benefit (Tier-1 EB) rating to Solar Management (Seremban) Sdn Bhd’s (SMS) proposed RM260 million ASEAN Green SRI Sukuk (proposed green sukuk). This instrument also carries credit ratings assigned by RAM Rating Services.
Proceeds from the proposed green sukuk will be used to refinance SMS’s existing financing facilities, and to partially repay shareholders’ advances utilised for the development and construction of its 50 MWac large-scale photovoltaic solar farm in Rembau, Negeri Sembilan.
“The Tier-1 EB rating assigned to the proposed green sukuk recognises the clean renewable energy generated by the plant,” RAM said in a statement yesterday.
“Having commenced operations on January 30, 2019, SMS’s solar plant is expected to generate approximately 75.7GWh of electricity per year. The proposed green sukuk, in alignment with United Nations’ Sustainable Development Goals, will yield measurable positive environmental effects.
“RAM Sustainability’s external review on SMS’s Asean Green SRI Sukuk Framework concludes that it provides clarity on the utilisation of proceeds, project evaluation and selection, management of proceeds and reporting commitments.
“The Framework is consistent with the eligibility requirements of Securities Commission Malaysia’s Sustainable and Responsible Investment (SRI) Sukuk Framework, the Asean Capital Markets Forum’s Asean Green Bond Standards and the International Capital Markets Association’s Green Bond Principles.”
RAM Sustainability is a provider of sustainability services and Environmental, Social and Governance analytics. Incorporated on May 31,2000, it is a wholly owned subsidiary of RAM Holdings Bhd.
RAM Sustainability is the first Asean-based provider of sustainability ratings and second opinions and has the distinction of being the first Registered Observer of the International Capital Market Associations’ Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines in Asean.