Posted Date: October 5, 2022

MARC Ratings has assigned a "Gold" Impact Assessment to Sunway South Quay Sdn Bhd's (SSQ) Sustainable Finance Framework (the Framework). The Framework will finance green, social and sustainability projects falling under three categories: green building, renewable energy, and socioeconomic advancement and empowerment.      

MARC Ratings is of the opinion that the Framework is aligned with the core components of the Green Bond Principles (GBP) and Social Bond Principles (SBP) of the International Capital Markets Association (ICMA), the ASEAN Green Bond Standards (GBS) and ASEAN Social Bond Standards (SBS) of the ASEAN Capital Markets Forum (ACMF), the Green Loan Principles (GLP) and Social Loan Principles (SLP) of the Loan Market Association (LMA), and the Securities Commission Malaysia's Sustainable and Responsible Investment (SRI) Sukuk Framework.

SSQ is a wholly-owned subsidiary of Sunway Berhad and is an established property development company. It has a portfolio of mixed developments comprising residential, commercial and institutional properties with a gross development value of more than RM3 billion.

Net proceeds will be predominantly used to finance the development of the Commercial Precinct 2 (CP2) project which comprises two blocks of office towers, a retail mall and a university campus. SSQ's CP2 project is part of Sunway City Kuala Lumpur and is designed to deliver a quality urban waterfront environment within the township and surrounding developments. The buildings are designed to be energy efficient with features such as efficient air distribution systems as well as LED and motion-sensor lighting, among others, being incorporated. The buildings are also equipped with energy-efficient fittings and rainwater harvesting systems for landscape irrigation. CP2's design will also include green areas to reduce urban heat island effects.

Once operational, CP2 would be accessible by the current elevated bus rapid transit (BRT) line, with free shuttle bus service and canopy walks within the Sunway City Kuala Lumpur area improving walkability and providing low-carbon mobility options within the city. A water treatment plant is also located near the lake within SSQ, which will recycle water to produce potable drinking water within Sunway City Kuala Lumpur.

In arriving at the Framework's Gold assessment, MARC Ratings assessed the impact of the Use of Proceeds to be significant with clear social and environmental benefits that directly support nine of the United Nations' 17 Sustainable Development Goals (SDGs).

The full Sustainable Finance Framework Assessment can be accessed here.

+603-2717 2958/ marc@marc.com.my