reNIKOLA Holdings Sdn Bhd via its wholly-owned subsidiary, reNIKOLA Solar II Sdn Bhd, will be issuing its second ASEAN Green SRI Sukuk following the signing of a subscription agreement yesterday with Hong Leong Investment Bank Berhad (HLIB) and MIDF Amanah Investment Bank Berhad (MAIB).
The signing of the subscription agreement took place at a ceremony held at Menara Hong Leong and signing the subscription agreement on behalf of reNIKOLA Solar II was Boumhidi Adel, Managing Director while the Joint Lead Managers were represented by Lee Jim Leng, Group Managing Director/Chief Executive Officer of HLIB and Che Puan Dato’ Seri Diraja Nur Julie Gwee Ariff, Senior Director/Head, Debt Markets of MAIB.
The reNIKOLA II Green Sukuk is rated AA2 with a stable outlook from RAM Rating Services Berhad (RAM) and is independently verified by RAM Sustainability Sdn Bhd to have complied with the Climate Bonds Standard and Certification Scheme making it the world’s first climate Sukuk certified by Climate Bonds Initiative (CBI). The proceeds from the issuance will be utilised mainly to refinance the development costs of two 30MW solar plants in Kuala Muda, Kedah and Machang, Kelantan.
The reNIKOLA II Green Sukuk has garnered positive interest from a wide range of fixed-income investors, resulting in an oversubscription of nearly three times the issue size.
Boumhidi Adel commented, “The reNIKOLA II Green Sukuk is a source of pride and motivation for reNIKOLA Group as we continue to lead in the area of green sustainable financing, with this being our second Sukuk issuance in three years. Being the first Sukuk in Malaysia certified by CBI to be 1.5°C transition pathway aligned has helped to enlarge and diversify our investor base, leading to the Sukuk to be nearly three times oversubscribed.”
Lee Jim Leng commented that this milestone highlights the overwhelming demand for green financing and investments in the financial space, and shows HLIB’s commitment to designing and supporting sustainability-driven financial solutions.
“Climate investment and green financing is a rapidly-expanding industry that should receive more support from financial institutions, especially in Southeast Asia. The overwhelming support we received from our investors reveals that there is a wealth of interest and potential in the Shariah-compliant climate investment market, which not only promotes the integration of sustainable practices across various industries, but also provides a new avenue for business growth and innovation, creating a win-win situation for all stakeholders.
Supporting this climate Sukuk represents HLIB’s commitment towards generating sustainable growth via financing that adheres to global ESG standards. In offering our expertise in advisory, structuring and marketing of the climate Sukuk, we want to continue being a dynamic, reliable partner to all stakeholders within the global climate finance ecosystem, and remain committed to providing innovative financial solutions for our customers’ diversified needs.”
Che Puan Dato’ Seri Diraja Nur Julie Gwee Ariff added “MAIB is proud to continue to play a leading role in supporting the reNIKOLA Group from its 1st issuance of ASEAN Green SRI Sukuk (to part finance 64MW of solar projects) to now the 2nd issuance of ASEAN Green SRI Sukuk (to part finance 60MW of solar projects). Our partnership with the reNIKOLA Group exemplifies our shared commitment to sustainable finance.
