MARC Ratings has assigned a “Gold” Impact Assessment to Northport (Malaysia) Bhd’s (Northport) Sustainability Sukuk Framework. The framework has been established to set the guiding principles for Northport’s issuance of Sustainability Sukuk for eligible projects that contribute towards environmental and social benefits.

Northport is a key port operator serving Port Klang, handling conventional cargo and container services through its two main terminals, Southpoint and North Port. The company is a subsidiary of MMC Port Holdings Sdn Bhd, which in turn is 100% owned by MMC Corporation Berhad.

Proceeds raised from the issuance of Sustainability Sukuk will be channelled towards eligible projects that address nine of the 17 United Nations Sustainable Development Goals (UN SDGs).

We opine that the framework is aligned with the core components of the applicable guidelines, frameworks, and principles published by the Securities Commission Malaysia, ASEAN Capital Markets Forum, and the International Capital Market Association, among others.

The Gold assessment of the framework reflects the view that the use of proceeds would provide relevant social and environmental benefits that support nine of the 17 UN SDGs.