MARC has assigned a “Gold” Green SRI Sukuk Assessment to UiTM Solar Power Dua Sdn Bhd’s (UiTM Solar 2) Green SRI Sukuk Framework (the Framework). UiTM Solar 2 is a fully owned Special Purpose Vehicle (SPV) of UiTM Energy & Facilities Sdn Bhd (UEFSB) which, in turn, is a wholly owned subsidiary of an investment holding company, UiTM Holdings Sdn Bhd (UHSB).
The green SRI sukuk proceeds will be fully allocated to a completed and grid-connected 25MWac solar photovoltaic (PV) power plant in Pasir Gudang, Johor (UiTM Solar Park II or the Project) pending commercial operation certification by Suruhanjaya Tenaga (ST). UiTM Solar Park II is sited on 112 acres of land within the UiTM Pasir Gudang campus, Daerah Johor Bahru, Johor. The project site was selected based on environmental criteria, which include solar radiation intensity, local physical terrain, environment, and climate, as well as its proximity to the grid connection point. The project will increase solar power generation by an average of 37,742 MWh/year (at P90 energy production levels) to meet the country’s growing electricity demand and bolster renewable energy penetration in Malaysia.
UiTM Solar 2’s Green SRI Sukuk Framework complies with the four core components of the International Capital Market Association’s Green Bond Principles 2018 and SC’s SRI Sukuk Framework corresponding to requirements for use of proceeds, process for project selection and evaluation, management of proceeds, and reporting. Green sukuk proceeds will be credited to a separately created Disbursement Account (DA) as defined and described in sukuk documentation. Unallocated proceeds will be transferred to a Revenue Account upon closing of the DA. UiTM Solar 2 has also committed to report on indicators applicable to the project’s environmental objectives.
UITM Solar Park II is the second of two utility-scale solar projects under the UiTM Group. Both renewable energy projects and the issuance of this type of sukuk to fund the projects are demonstrative of a group-wide strategy to support sustainable development and climate change mitigation. Importantly, UiTM Solar 2’s Green SRI Sukuk Framework aligns with UiTM Group’s positioning of sustainability as an intentional and aspirational strategy and its ongoing transition towards greater environmental and social responsibility in its governance approach.
The principal methodology used in this assessment is MARC’s Impact Bond Assessments (IBA) criteria published in July 2018, accessible from MARC’s official website at www.marc.com.my. The Impact Assessment is not a credit rating and is arrived independently of the credit rating process of the sukuk. UiTM Solar 2’s pre-issuance external review report can be accessed here.
Milly Leong, +603-2717 2938/ email@example.com.