MARC Ratings has assigned a “Gold” Impact Assessment to UDA Holdings Berhad’s (UDA) Sustainability Sukuk Framework (the Framework). The Framework has been established to set the guiding principles for UDA’s issuances of Islamic financing instruments (Sustainability Sukuk) 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 and ASEAN Social Bond Standards of the ASEAN Capital Markets Forum, and the Green Bond Principles and Social Bond Principles of the International Capital Markets Association.
Proceeds raised from the issuance of Sustainability Sukuk will be channelled towards eligible projects falling under the following categories:
• Green Category: Green Projects (UN SDG 11); Renewable Energy, Energy Efficiency and Climate Action (UN SDGs 7, 9, 11, and 13); and Pollution Prevention and Control (UN SDGs 3, and 11)
• Social Category: Affordable Housing (UN SDG 11); Waqf (UN SDG 11); and Socioeconomics Advancement and Empowerment (UN SDGs 5, and 8).
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 seven of the 17 UN SDGs.
