MARC Ratings has assigned a “Gold” Impact Assessment to MY E.G. Services Berhad’s (MYEG) Sustainability Financing Framework (the Framework). The Framework will finance green as well as social projects falling under four categories: accessibility to quality healthcare, accessibility to affordable and quality basic infrastructure, socioeconomic advancement and empowerment, and eco-efficient and/or circular economy adapted products, production technologies and processes.
MARC Ratings is of the opinion that the Framework is aligned with the core components of the Green Bond Principles and Social Bond Principles of the International Capital Markets Association, the ASEAN Green Bond Standards and ASEAN Social Bond Standards of the ASEAN Capital Markets Forum, the Green Loan Principles and Social Loan Principles of the Loan Market Association, and the Securities Commission Malaysia’s Sustainable and Responsible Investment (SRI) Sukuk Framework.
MYEG is listed on the Main Board of Bursa Malaysia Securities Berhad. MYEG has also been included in the FTSE4Good Bursa Malaysia Index since 2017 and currently holds a 4-star rating in Bursa Malaysia’s ESG ranking. This puts MYEG in the top 25th percentile of companies with good ESG disclosure and performance, reflecting its commitment towards sustainability issues.
The projects to be financed through the Framework will support the transition towards a more inclusive, resource-efficient economy that is aligned with the United Nations Sustainable Development Goals (SDGs) and circular economy concept.
Proceeds raised from respective financing instruments will be utilised for the provision of foreign worker housing, based on international and national standards such as those by the International Labour Organisation and Malaysia’s Workers’ Minimum Standards of Housing and Amenities Act, and the provision of decentralised blockchain solutions. The indicative issuance timeline for the identified projects is by 4Q2022. 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 seven of the United Nations’ 17 SDGs.
The full Sustainability Financing Framework Assessment can be accessed here.