KUALA LUMPUR: RAM Sustainability Sdn Bhd has assigned environmental benefit (EB) ratings to the proposed Asean sustainability bonds/SRI Sukuk to be issued under Cagamas Bhd’s RM60bil MTN & IMTN programme.
It said in a statement on Monday it had assigned EB ratings to give green solutions within Cagamas’ sustainability bonds/Sukuk framework.
The green solutions are renewable energy, energy efficiency, green buildings, low-carbon transportation, sustainable water and wastewater management.
At the same time, RAM Sustainability also assigned social benefit (SB) ratings to social solutions under the framework.
Renewable energy and energy efficiency solutions prescribed by the Framework carry the highest EB ratings of Tier-1, reflecting their role in substantially decarbonising the energy system and providing broader environmental benefits.
Meanwhile, the Tier-1 SB ratings assigned to Cagamas’ affordable housing and employment generation via SME solutions underpin the issuer’s strategic function as a national institution supporting social benefits at the national level, on a potentially significant scale, depth and duration.
RAM Sustainability’s head of sustainability services, Gladys Chua said Cagamas’ role in supporting the financial system is even more crucial now as the nation adjusts to the impact of Covid-19.
“It is especially important to support sustainable economic recovery going forward through the proposed sustainability bonds/Sukuk that will benefit both the society and the environment,” she said.
RAM Sustainability also pointed out the framework provides clarity on important aspects such as the intended use of proceeds, project evaluation and selection, management of proceeds and reporting commitments.
The framework is aligned with the transparency and disclosure requirements of Securities Commission’s sustainable & responsible investment (SRI) Sukuk framework, the Asean Green Bond Standards, the Asean Social Bond Standards, the Asean Sustainability Bond Standards and the globally recognised Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines.
“In our view, Cagamas’ proposed sustainability bonds/SRI Sukuk will create a positive environmental and social impact by financing projects and solutions that are essential for a sustainable future. This instrument also carries credit ratings assigned by RAM Rating Services,” it said.
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