Spanish firm Solarpack has raised MYR285 million through its project company, 3SP which issued an ASEAN Green SRI Sukuk Wakalah in accordance with the ASEAN Green Bond Standards, the Securities Commission Malaysia’s Sustainable and Responsible Investment Sukuk framework and the International Capital Market Association’s Green Bond Principles.
In its statement, it said that these Islamic notes comprise 38 semi-annual tranches with tenors ranging from 1 year to 19.5 years framed in a way that would match closely with the cash-flow generation from the Project.
The net proceeds from the issuance have been utilised to refinance the bridge loan raised to fund the construction of the Plant. The project has received a credit rating of AA2/Stable from RAM Rating Services Berhad while RAM Sustainability Sdn Bhd, which reviewed 3SP’s Green Sukuk Framework, has assigned a Tier-1 Environmental Benefit (EB) rating to the Project.
The statement further informed that Maybank Investment Bank Berhad (MIBB) has acted as the Principal Advisor and Lead Arranger (PA/LA) while MIBB and CIMB Investment Bank Berhad (CIMB) acted as the Joint Lead Managers (JLMs) on the issuance.
Aditya Kulshrestha, Head of Project Finance Asia and Africa for Solarpack,said, “This is a landmark transaction for Solarpack as it represents the first green project bond issuance by Solarpack allowing us to broad base the debt financing sources for our projects beyond the traditional loan market as we scale up. The AA2 credit rating and the Tier-1 Environmental Benefit rating of the issuance underline Solarpack’s continuing commitment to highest standards of corporate governance and environmental improvement.”
According to the Sustainalytics ESG Risk Ratings, Solarpack is the world’s most sustainable utility. Moreover, the firm has also recently published a Green Financing Framework to integrate its sustainability strategy into the company’s financing policy. By the end of 2023, Solarpack aims to execute financial transactions that qualify as green financing for the amount of €1 billion. This will focus on developing projects that would impact positively and accelerate transition to clean and affordable energy.