Malaysia's reNIKOLA to become first issuer of certified green sukuk

Kuala Lumpur-based renewable energy company reNIKOLA Holdings Sdn Bhd on Tuesday said it is issuing an up-to-MYR-390-million (USD 86m/EUR 79m) sukuk, which marks the first certified green sukuk in the world.

The issuance has been verified by RAM Sustainability Sdn Bhd as complying with the science-based Climate Bonds Standard and Certification Scheme.

The Malaysian company said the certification by Climate Bonds shows its dedication to global best practice in climate finance. reNIKOLA is issuing green sukuk for the second time in three years. The company owns and operates 178 MWp of solar power plants across Peninsular Malaysia. It aims to create a renewable energy portfolio of up to 1 GWp.

Sean Kidney, chief executive of Climate Bonds Initiative, said the issuance of the first certified green sukuk is a significant milestone in the growing green sukuk market. “By obtaining the Climate Bonds certification, reNIKOLA sets an example for other issuers, investors, and stakeholders, paving the way for a more robust and standardised green sukuk market,” he added.

(MYR 1 = USD 0.221/EUR 0.202)

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