reNIKOLA issues RM390mil Asean green SRI sukuk, world's first climate sukuk

KUALA LUMPUR: Renewable energy company reNIKOLA Holdings Sdn Bhd (reNIKOLA) issued the world’s first climate sukuk, the RM390 million Asean Green SRI Sukuk (reNIKOLA II Green Sukuk), on Sept 29, 2023.

The sukuk was issued by its wholly-owned subsidiary, reNIKOLA Solar II Sdn Bhd.

In a statement today, reNIKOLA said RAM Rating Services Bhd had rated the sukuk as AA2 with a stable outlook and is independently verified by RAM Sustainability Sdn Bhd to have complied with the Climate Bonds Standard and Certification Scheme, making it the world’s first climate Sukuk certified by Climate Bonds Initiative (CBI).

It said that the sukuk had garnered positive interest from a wide range of fixed-income investors, resulting in an oversubscription of nearly three times the issue size.

"The proceeds from the issuance will be utilised mainly to refinance the development costs of two 30 megawatt (MW) solar plants in Kuala Muda, Kedah and Machang, Kelantan,” it said.

reNIKOLA is 55 per cent owned by reNIKOLA Sdn Bhd and 45 per cent by B.Grimm Power (Malaysia) Sdn Bhd, a wholly-owned subsidiary of Thailand’s B.Grimm Power Public Company Ltd (B.Grimm Power).

B.Grimm Power has active operations in nine countries with 56 projects in operation and on route to 10,000 MW installed capacity by 2030.

B.Grimm Power president Datuk Dr Harald Link said that the sukuk issuance shows the group’s commitment to be a leader in the renewable energy sector and within the domain of green sustainable financing.

"This achievement represents reNIKOLA’s second sukuk issuance in just three years. Being the first Sukuk in Malaysia certified by CBI has helped to expand and diversify our investor base, leading to the sukuk being around three times oversubscribed,” he said.

He further noted that the group holds a pivotal role within B.Grimm group’s strategic investments in the Malaysian renewable energy sector.

"The investment in reNIKOLA, coupled with the issuance of the reNIKOLA II Green Sukuk, is poised to provide substantial advantages to B.Grimm group’s comprehensive investment portfolio. It aligns seamlessly with the group’s ambitious commitment to achieving net-zero carbon emissions by 2050.

"This endeavour resonates with our vision of empowering the world compassionately based on the principles of generosity, creating value for society, and growing alongside Thailand,” he added. - Bernama

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