MARC Ratings has assigned a “Gold” Impact Assessment to Solarvest Holdings Berhad’s (Solarvest) Sustainability Sukuk Framework (the Framework). The Framework has been established to set the guiding principles for Solarvest’s issuances of Islamic financing instruments for specific eligible projects.
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 ASEAN Green Bond Standards, ASEAN Social Bond Standards and ASEAN Sustainability Bond Standards of the ASEAN Capital Markets Forum, and the Green Bond Principles and Social Bond Principles and Sustainability Bond Guidelines of the International Capital Market Association.
Solarvest is an investment holding company whose principal activities are engineering, procurement, construction and commissioning (EPCC) solutions for projects covering domestic houses, commercial and industrial properties as well as large scale solar photovoltaic plants. It was listed on the ACE Market of Bursa Securities on November 26, 2019, and was subsequently transferred to the Main Market on October 13, 2021. Its five-year strategic roadmap (2022–2026) has an overarching theme to transform itself from a pure-play solar company to a clean energy specialist, with three strategic growth pillars, namely maintain its EPCC market leadership, develop 1GW of assets, and embark on a vertical expansion across the clean energy ecosystem.
Proceeds raised from the financing instruments will be channelled towards eligible projects and eligible assets falling under the following categories: Renewable Energy, Energy Efficiency, Climate Change Adaptation, and Affordable Basic Infrastructure. All four eligible categories are commonly aligned with the United Nations’ Sustainable Development Goals (UNSDGs) 7, 8, 11 and 12.
In arriving at the Framework’s Gold assessment, MARC Ratings has assessed the impact of the Use of Proceeds to be significant, with clear environmental and social benefits that directly support four of the United Nations’ 17 SDGs.