KUALA LUMPUR (March 17): Cenviro Sdn Bhd, a wholly owned investee of Khazanah Nasional Bhd has issued its first sustainability-linked sukuk of RM54.6 million in two tranches from its unrated Islamic medium-term notes programme of up to RM500 million in nominal value under the Shariah principle of Wakalah Bi Al-Istithmar (Sukuk Wakalah Programme).

Cenviro said the sustainability-linked sukuk is in line with principles prescribed by the International Capital Market Association (ICMA) and Cenviro’s commitment towards the sustainability agenda, particularly in the reduction of greenhouse gas emissions intensity.

It added that Cenviro’s sustainability-linked sukuk framework has been independently reviewed by a second party opinion provider, RAM Sustainability Sdn Bhd (RAM Sustainability).

To recap, Cenviro in late December last year had proposed to issue RM500 million worth of Islamic bonds or sukuk under the Wakalah principle, according to waste management specialist Cenviro's lodgement with the Securities Commission Malaysia's (SC) website.

Meanwhile, Cenviro managing director Dr Johari Jalil said the group is pleased to have its sustainability-linked sukuk framework aligned with the requirements of the globally recognised Sustainability-Linked Bond Principles (SLBP) issued by ICMA.

This, he said, RAM Sustainability considers the key performance indicator (KPI) selected to be relevant and material to the issuer and the Sustainability Performance Target (SPT) to be ambitious and impactful.

“We are focused and committed to achieve the targeted SPT which will contribute to the United Nations’ Sustainable Development Goals (SDGs) 9, 12 and 13,” added Johari.

Cenviro further noted that the Tranche 1 issuance will have a tenure of eight years while Tranche 2 issuance will have a tenure of 12 years.

The proceeds from the issuances will be used for capital expenditure requirements of Kualiti Alam Waste Management Centre undertaken by Kualiti Alam Sdn Bhd and for the development of the new Satellite Waste Management Centre project in Pengerang, Johor undertaken by Cenviro Johor Sdn Bhd, said Cenviro.

RHB Investment Bank is the sole principal adviser, sole lead arranger, sole lead manager and facility agent in respect of the Sukuk Wakalah Programme.