MARC Ratings has assigned a “Gold” Impact Assessment to LBS Bina Group Berhad’s (LBS) Sustainable Financing Framework. The framework has been established to set the guiding principles for LBS’ sustainable financing instruments for specific eligible projects that contribute towards environmental and social benefits.
MARC Ratings has assessed the framework and is satisfied that it is aligned with the core components of the Sustainable and Responsible Investment (SRI) Sukuk Framework of the Securities Commission Malaysia; the Green Bond Standards, Social Bond Standards, and Sustainability Bond Standards of the ASEAN Capital Markets Forum; and the Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines of the International Capital Market Association, among others.
LBS has delivered over 40,000 affordable homes across Malaysia, as part of its efforts in creating sustainable living, working and recreational environments for the community. To help address the country’s affordable housing issue, LBS has collaborated closely with Malaysian state and federal governments through various schemes, including My First Home Scheme, Rumah Selangorku, Rumah Idaman MBI, and Perumahan Penjawat Awam.
Proceeds raised from the sustainable financing instruments will be channelled towards eligible projects and eligible assets falling under the following categories (while addressing the relevant United Nations Sustainable Development Goals (UN SDGs)):
- Green Category: Green Buildings (UN SDGs 7, 9, 11, 12 and 13); Renewable Energy/Energy Efficiency (UN SDGs 7, 11, 12 and 13); Pollution Prevention and Control (UN SDGs 9, 11, 12 and 13); and Biodiversity Conservation (UN SDG 15)
- Social Category: Affordable Housing (UN SDGs 1 and 11); and Socioeconomic Advancement and Empowerment (UN SDGs 1, 3, 4, 8 and 13).
In arriving at the framework’s Gold assessment, MARC Ratings opined that the impact of the Use of Proceeds is significant, with clear social and environmental benefits that directly support 10 of the 17 UN SDGs.