KUCHING: RAM Holdings Berhad (RAM) sees the Sarawak government’s plan to develop the Sustainable Sarawak Blueprint, announced on March 29, as a visionary and strategic move.
Its group chief executive officer (CEO) and executive director Chris Lee said that the state’s pioneering move will fit into the sustainable finance thrust being rapidly adopted by the Malaysian banking sector and capital markets, precipitating strong investors’ interest in Sarawak and continued interest in the Malaysian debt capital market which has been vital to funding long-term projects that have spurred the state’s economic progress.
Deputy Minister of Energy and Environmental Sustainability Dr Hazland Abang Hipni has said that the state is focused on three sources of clean energy, namely hydropower, solar energy, and hydrogen.
“Hence, we are on the right track in improving the environment and moving to a more sustainable future.
“Sarawak hopes that environmental, social and governance (ESG) evaluation will be further introduced in the state, placing Sarawak among the world’s forerunners in such efforts,” he said.
RAM Rating CEO Awang Za’aba Awang Mahmud said that RAM Ratings has observed through the long-standing and diverse credit rating engagement with both the Sarawak state government and state-related entities that good governance and transparency have been a common key feature.
Since 1993, the company has cumulatively rated more than RM 31 billion of bond and sukuk programmes from Sarawak-related issuers. Sarawak is also a pioneer issuer state in the ringgit and foreign-currency bond markets, through its various special-purpose vehicles.
On April 27, Sarawak Petchem Sdn Bhd, which is jointly owned by Permodalan Satok Berhad and the Sarawak Economic Development Corporation, announced its proposed RM6 billion Sukuk Wakalah, rated AAA(s) RAM.
Sarawak Petchem Sdn Bhd was established to develop, construct and operate the first methanol plant in Bintulu that is aimed at retaining the value chain of Sarawak’s oil and gas downstream activities.
It is also expected to create economic and societal positive impacts through technology transfers, capacity training, product development and collaborations with local vendors through its proposed vendor development programme that will link them to well-established global players in the industry.
In line with the state’s stance and momentum on environmental, social and governance (ESG) transparency and its sustainability direction, Sarawak Petchem, which is associated with the fossil fuel sector, undertook a comprehensive independent ESG assessment, for which it was accorded a Silver3p (S3p) Project Sustainability Rating by RAM Sustainability today.
In October last year, Sarawak Energy Berhad – a leading RAM-rated entity – secured an RM100 million sustainability-linked revolving credit loan from a major Malaysian bank, making it the first utility company in the country and the first East Malaysian company to secure a loan linked to measurable sustainability performance targets.
The loan is paired with Sarawak Energy’s commitment to keeping its grid emission intensity in alignment with the Paris Agreement and its pledge to meet the objective of the ‘Business Ambition for 1.5°Celsius’ initiative.
CEO of RAM Sustainability Promod Dass also said that this is the sustainability rating assigned to any Sarawak entity and establishes a foundation for other Sarawak state entities to emulate.
In its rating exercise, the company would rigorously analyse Sarawak Petchem’s sustainability performance based on all ESG and positive impact factors as well as a due diligence meeting with the company’s management.
