RAM assigns Tier-3 Environmental Benefit rating to Segi Astana’s RM415 million Asean Green Bond

KUCHING: RAM Consultancy has assigned Tier- 3 Environmental Benefit rating to Segi Astana Sdn Bhd’s (Segi Astana) RM415 million Asean Green Medium-Term Note (MTN) Facility which will be used to refinance the outstanding RM400 million MTN utilised for the financing of the construction and development costs of gateway@klia2, a certified green building.

Segi Astana is an incorporated joint venture company between WCT Holdings Bhd and Malaysia Airport Holdings Bhd set up for the development of gateway@ klia2 in Sepang, Selangor.

RAM Consultancy’s Environmental Benefit rating, which forms part of its second opinion review, essentially tiers projects based on their contributions towards a low carbon and sustainable future. Green- certified or high- performance buildings indirectly contributes to a lowcarbon objective.

“The gateway@klia2 integrated complex is a key infrastructure component of the Kuala Lumpur International Airport 2 ( KLIA2) and is equipped with green elements that improves its environmental performance thereby reducing its impact on the climate,” RAM Consultancy’s co- head of Sustainability Services, Dinagaran Chandra, said.

The integrated complex has been certified as Leadership in Energy & Environmental Design ( LEED) Silver by an independent verifier. The LEED certification system was developed by the US Green Building Council and is amongst the most-widely used green building system in the world.

Green building certification systems around the world play an important role in defining green in the buildings sector. They provide a systematic and objective framework for evaluating environmental performance of buildings and sustainable design features.

Segi Astana’s Asean Green MTN framework is also aligned to the transparency and disclosure requirements of the Asean Green Bond Standards which is based on the International Capital Markets Association’s Green Bond Principles (GBP). Financing for green- certified buildings are explicitly recognised under the Asean Green Bond Standards as a green project.

Segi Astana’s Asean Green MTN framework provides clarity on important aspects of utilisation of proceeds, project evaluation and selection, management of proceeds and reporting commitments.

RAM Consultancy opined Segi Astana has processes in place to address key environmental and social issues pertaining to the development and operations of the integrated complex.