Tadau Energy Sdn Bhd (Tadau Energy) has successfully issued RM250 million of Sustainable Responsible Investment Sukuk (Green SRI Sukuk Tadau) yesterday; which it claimed to be the first Green Sukuk issued in Malaysia.
Tadau Energy’s Green Sukuk Framework has been certified by the Center for International Climate and Environmental Research – Oslo, Norway (“CICERO”).
Tadau Energy is a project company undertaking a large scale solar project of 50MWac in Kudat, Sabah under two 21-year Power Purchase Agreements entered into with Sabah Electricity Sdn Bhd (“SESB”) in December 2016. Proceeds from the Green SRI Sukuk Tadau will be channelled to finance the Project.
Tadau Energy is committed to contributing to the nation to reduce its dependence on power generated using fossil fuels. Through the use of the energy generated from the Project, Tadau Energy’s goal is to conserve the environment by providing an environmentally friendly, clean and sustainable power supply.
Affin Hwang Investment Bank Bhd, a member of the Malaysian International Islamic Financial Centre (MIFC) community is the Principal Adviser, Lead Arranger, Lead Manager and Facility Agent for the Green SRI Sukuk Tadau issuance.
The transaction marks another milestone in the Malaysia capital markets, following the launch of the SRI Sukuk framework by Securities Commission (“SC”) in 2014. This is also in line with the rising trend of bonds introduced globally to facilitate and promote responsible investing, reinforcing Malaysia’s position as the marketplace of innovation, expertise and deal flow.
“We are pleased with the issuance of Green SRI Sukuk Tadau as it exemplifies our commitment towards green energy and sustainable responsible investments. We strongly believe that green energy is the way forward and this industry has tremendous potential for growth.” says Tan Sri Chua Ma Yu, Chairman of the Board of Directors of Tadau Energy.
“Aligning our efforts with the growing focus on sustainable and responsible investments, we are pleased to facilitate such a transaction to mark another milestone in the industry.” says Datuk Maimoonah Hussain, Group Managing Director, Affin Hwang Investment Bank Berhad.
The Green SRI Sukuk Tadau with a tenure of 2 to 16 years have been assigned a long-term rating of AA3 by RAM Rating Services Berhad.
 Cicero has rated the Tadau Energy Green Sukuk Framework as “Dark Green” based on its overall assessment of project type and policies guiding the implementation of Tadau Energy Green Sukuk Framework. Cicero allocates “Dark Green” shading for projects and solutions that are realizations of the long-term vision of a low carbon and climate resilient future. Typically, this will entail zero emission solutions and governance structures that integrate environmental concerns into all activities.