KUALA LUMPUR (Oct 16): Sunway Group’s flagship integrated township in Johor, Sunway City Iskandar Puteri (SCIP), has become Malaysia’s first green township to be awarded the Gold sustainability grading by Malaysian Rating Corporation Bhd (MARC), marking a significant milestone in sustainable urban development.

The recognition follows the establishment of a RM2 billion Sustainable Finance Framework through a partnership between Sunway Iskandar Development Sdn Bhd (SIDSB) and Alliance Bank Malaysia Bhd.

In a press statement on Oct 15, Sunway Property chief executive officer (Southern region) Gerard Soosay said: “The MARC Gold grading provides independent validation of our sustainability commitments and represents a transformative moment for sustainable township development in Malaysia. By establishing the first Sustainable Finance Framework for a green township, we are demonstrating that large-scale urban development can align with the highest ESG standards while remaining commercially viable.”

Alliance Bank group chief corporate and institutional banking officer Teoh Chu Lin said: “We are grateful to Sunway for their trust and we are delighted that our conviction is shared by the independent assessment agency, MARC, who has accorded its highest sustainability grading to this project.”

Under the framework, SIDSB completed a RM230 million sustainability bond issuance, with Alliance Bank acting as the sole principal adviser, lead arranger, lead manager and subscriber.

The bond proceeds will support the Pendas development, which spans 1,300 acres of the township’s total 2,000-acre land area.

The Sustainable Finance Framework was developed with Alliance Bank as sustainability structuring adviser, and aligns with standards set by the Securities Commission Malaysia, Asean Capital Markets Forum and International Capital Market Association.

MARC’s assessment encompassed township-wide criteria including environmental and social impact, governance and risk management.

SCIP is provisionally certified as a green township by the Green Building Index. Sunway said the new framework enables the township to access sustainable capital while reinforcing its commitment to measurable ESG targets and long-term resilience.

Future bond issuances under the framework will be guided by ongoing market response, ESG performance and stakeholder feedback, that align with the group’s broader mission of creating communities that are liveable, inclusive and environmentally resilient for future generations, Sunway said.