MARC Ratings has assigned a “Gold” Impact Assessment to Malaysian Resources Corporation Berhad’s (MRCB) Sustainable Financing Framework. The framework has been established to set the guiding principles for MRCB’s 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; the Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines of the International Capital Market Association, among others.

As one of the leading property and construction companies in Malaysia, MRCB has been a key player in the development of the nation’s infrastructure and transit-oriented development (TOD) projects. Recognising their operation’s impact on climate change, MRCB has adopted robust carbon and eco-efficiency footprint reporting and set reduction targets in line with their sustainable growth initiatives embedded in their business strategy. These initiatives are aligned with the United Nations’ Sustainable Development Goals (UN SDGs) through the adoption of a sustainability model.

Proceeds raised from its sustainable financing instruments will be channelled towards eligible projects and eligible assets falling under the following categories:
• Green Category: Green Buildings (UN SDGs 11, 12 and 13); Renewable Energy (UN SDGs 7, 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); Access to Basic Infrastructure (UN SDGs 3, 9 and 11); and Socioeconomic Advancement and Empowerment (UN SDGs 8 and 10).

In arriving at the framework’s Gold assessment, MARC Ratings has assessed the impact of the Use of Proceeds to be significant, with clear social and environmental benefits that directly support 10 of the 17 UN SDGs.