SOLAR power producer reNIKOLA Solar Sdn Bhd has earned the distinction of seeing its reNIKOLA ASEAN Green SRI Sukuk (Islamic bond) which is part of the RM390 mil Islamic Medium-Term Note (MTN) programme being assigned a Tier-1 Environmental Benefit (EB) rating by RAM Sustainability Sdn Bhd.
The MTN also carries credit ratings assigned by RAM Ratings.
Issuance proceeds from the sukuk will be primarily used to part finance and/or reimburse the development costs of three solar photovoltaic power plants in Malaysia with a cumulative installed capacity of 64 MWac.
The Tier-1 EB rating recognises the clean renewable energy generated by the solar plants. The plants are anticipated to generate an aggregate average of 123 GWh of energy per year throughout the tenure of the reNIKOLA ASEAN Green SRI Sukuk Programme.
RAM Sustainability believes that the sukuk will create a positive impact on the environment while being in line with the United Nations’ Sustainable Development Goal 7: affordable and clean energy.
“The rapid increase in the number of green bond/sukuk issuances, including the reNIKOLA ASEAN Green SRI Sukuk, demonstrates the transition of the debt capital market towards sustainable development initiatives,” noted RAM Sustainability’s head of sustainability services Gladys Chua.
“Our external review of its sukuk programme framework concludes that it provides clarity on the utilisation of proceeds, the process for project evaluation and selection, the management of proceeds, and reporting commitments.”
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. – Nov 27, 2020.