Latest news with #GreenBondPrinciples
The Hindu
30-07-2025
- Business
- The Hindu
Council gives nod for bond to fund major eco-friendly infrastructure projects
The Greater Chennai Corporation (GCC) Council on Wednesday passed a resolution to raise ₹205.64 crore by issuing its first Green Municipal Bond to fund major environment-friendly infrastructure projects. The resolution said that the GCC issued a municipal bond — listed on the National Stock Exchange on May 22 — that raised ₹421 crore against a base size of ₹100 crore at an interest rate of 7.97% per annum. Chennai Corporation seeks Council's approval to roll out it's first-ever Green Bond, a type of funding for environmentally friendly projects. The GCC proposed this bond aiming to raise ₹205.64 crore. GCC expects to receive an additional ₹10 to ₹20 crore incentive under AMRUT… — R Aishwaryaa (@AishRavi64) July 30, 2025 The GCC said the green bond issue would follow Securities and Exchange Board of Indiaregulations. SEBI Regulations (Guidance note) requires the establishment of a Bond Issue Committee with Commissioner as chairperson. The civic body said it would provide annual impact reports to investors, detailing fund utilisation and environmental outcomes. Further, the bond would adhere to international frameworks such as the Climate Bonds Standard and Certification Scheme, and the Green Bond Principles issued by the International Capital Market Association. Since it is a 'Green Bond', the GCC is eligible to receive up to ₹20 crore as an incentive, under the AMRUT 2.0 scheme. It is also eligible for an incentive of ₹10 crore per ₹100 crore raised, subject to a maximum of ₹20 crore, under the scheme. According to the resolution, the proceeds from this bond will be used to part-fund the biomining project at Kodungaiyur dumpyard. The GCC's total contribution is ₹385.64 crore — ₹205.64 crore financed through the bond and ₹180 crore through KfW, a German Bank.
The Star
25-07-2025
- Business
- The Star
Bankable sustainability
Chasing capital through ESG — Malaysian firms are realigning their strategies as green finance takes centre stage PALM oil giants, solar startups, data centre developers and more operate in vastly different industries. Yet, besides revenue growth, earnings and returns, they are all chasing another thing in common — green capital. Green capital refers to funding dedicated to projects or companies that generate measurable environmental benefits, such as renewable energy or sustainable agriculture. This capital is often channeled through instruments like green bonds or sustainability-linked sukuk, which link financing to ESG performance. These companies aren't the only ones. From pioneering the world's first green sukuk to seeing bonds oversubscribed by sustainability-hungry investors, more and more companies are discovering that in today's economy, chasing green is ethical and good business. But there is a catch. Sustainability is not bankable unless it is credible, structured and certified. That is why companies are moving towards aligning with global standards like the International Capital Market Association (ICMA) Green Bond Principles and the Asean Green Bond Standards to polish their ESG credentials and open doors to new pools of capital. Green bonds and ESG-linked sukuk are debt instruments designed to raise funds specifically for projects with environmental and social benefits. Unlike conventional bonds, their terms often include commitments to achieve defined ESG targets, making them appealing to investors seeking both financial returns and measurable impact. A financial enabler It was not long ago when Malaysian corporations viewed ESG as a reporting obligation and tedious checklist. That narrative has shifted since then. Today, ESG has become a strategic lever for accessing capital, managing risk and signaling long-term value to investors. Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour said the central bank has found there has been uptake in green and transition related financing and solutions. 'Financial institutions are increasing their offering of green and transition related financing and solutions. These point towards the financial sector making steady progress in supporting Malaysia's orderly transition to a greener economy. 'On green financing, we see growing demand and uptake of funds made under BNM's Low Carbon Transition Facility and High Tech and Green Facility. Similarly, we saw further progress in the Greening Value Chain programme with over 150 SMEs having begun reporting emissions data,' he said in his foreword of the BNM Annual Report 2024. Meanwhile, according to the International Finance Corporation (IFC)—the largest global development institution focused on the private sector in emerging markets and a member of the World Bank Group—ESG integration in emerging markets is increasingly driven by the demand of international investors and access to global capital markets—not purely by regulation. In IFC's Emerging Market Green Bonds 2023-2024 Report, it was stated that this shift is particularly visible in Malaysia, where more corporates are using ESG-linked tools such as green bonds, sustainability-linked sukuk, and ESG-themed funds to unlock capital. Companies with credible sustainability frameworks can tap into larger and more diverse pools of investors—many of whom are actively reallocating capital toward climate-positive and socially responsible investments, it noted. Insights from the Climate Bonds Initiative's Asean Sustainable Finance State of the Market 2022 show that Asean countries are intensifying their positioning for green and sustainable finance, which is gaining traction with the private sector. It was noted that nearly half of Malaysian companies surveyed are investing in new technologies and upskilling to protect their future business, a sign of corporate action beyond public sector mandates. What is driving the demand? ESG-linked instruments are increasingly valued for ethical reasons as well as their ability to deliver climate resilience, social impact, and sustainable long-term returns. The Global Sustainable Investment Alliance's Global Sustainable Investment Review 2023 points to investors' growing insistence on clear disclosures and impact measurement, further driving demand for ESG-linked products that meet internationally recognised standards. Meanwhile, over 80% of asset owners have integrated ESG factors into their investment decisions, driven by evolving client demands and tighter regulatory requirements, PwC's Global ESG Survey 2023 found. IFC's Emerging Market Green Bonds 2023–2024 report highlights how robust regulatory frameworks, such as the Asean Green Bond Standards, underpin investor confidence by ensuring transparency and credibility. Companies demonstrating strong ESG credentials benefit from lower capital costs and superior valuation, encouraging issuers to adopt ESG-linked financing, stated McKinsey's The ESG Premium: New Perspectives on Value and Performance report. Meanwhile, Deloitte has highlighted that sustainability-linked bonds (SLBs) have emerged as strategic financing instruments that align corporate sustainability goals with financial performance. These bonds adjust interest rates based on whether issuers meet predefined ESG targets—creating a direct financial incentive for achieving sustainability outcomes. Making ESG bankable Investors today demand clear, verified impact metrics that demonstrate real progress on environmental, social, and governance goals. Aligning with internationally recognised standards, such as the ICMA Green Bond Principles and the Asean Sustainability Taxonomy, is critical. These frameworks guide issuers to set clear, time-bound sustainability KPIs—from emissions reduction targets to renewable energy usage—that resonate with global investors. Credibility is key. According to Securities Commission Malaysia, obtaining third-party assurance for ESG disclosures enhances investor confidence and reduces perceived risks. Firms like CIMB's ESG advisory unit offer expert guidance to help corporations develop transparent, investor-aligned sustainability frameworks. World Bank has emphasised that standardised, transparent ESG disclosures are essential to reducing issuance premiums and attracting cross-border investment. It notes that credible sustainability reporting is critical for unlocking sustainable finance across sovereigns, corporates, and financial institutions. Malaysian issuers leading the way Malaysia has emerged as a pioneer in Asean's sustainable finance space, with corporates actively issuing green bonds and sustainability-linked sukuk to fund low-carbon projects and future-proof their business models. The country made global headlines in 2017 when Tadau Energy Sdn Bhd issued the world's first green SRI sukuk to finance a solar photovoltaic plant in Sabah. Since then, a growing number of issuers—including Quantum Solar Park, PNB Merdeka Ventures, UiTM Solar Power and Sinar Kamiri—have followed suit, funding solar farms, green buildings, and hydropower projects. YTL Power International Bhd issued a RM1.5bil sustainability-linked sukuk, where interest rates are tied to achieving verified ESG targets. CIMB Group Holdings Bhd has advised on numerous green and sustainability-linked instruments and developed one of the region's most comprehensive sustainable finance frameworks. Cagamas Bhd, the national mortgage corporation, has issued both green and social bonds, showcasing how ESG funding can be channeled into housing access and environmental impact. More recently, companies have begun adopting outcome-based financing. Yinson Holdings Bhd issued Malaysia's first sustainability-linked sukuk in 2021, a RM1bil deal with coupon rates tied to achieving ESG targets. Cenviro Sdn Bhd and Sunway REIT have also entered the market with performance-linked sukuk, signaling a shift toward ESG accountability. Green projects by the billions Malaysia is steadily positioning itself as a regional leader in sustainable infrastructure, driven by a surge of large-scale green investments aligned with national decarbonisation goals. These projects, backed by both domestic conglomerates and global investors, are reshaping the country's industrial and energy landscape. One of the most significant commitments to date is from Saudi Arabia's ACWA Power, which signed a Memorandum of Understanding with the Malaysian Investment Development Authority (MIDA) in May 2025 to invest up to US$10bil in developing 12.5 gigawatts of renewable energy capacity by 2040. Meanwhile, Khazanah Nasional Bhd, via UEM Group Bhd, is spearheading a RM6bil, 1 GW hybrid solar project with a 16.2ha renewable energy industrial park in Gerbang Nusajaya, Johor. Led by UEM Sunrise in partnership with ITRAMAS, CMECWUXI, and Blueleaf Energy (part of Macquarie's Green Investment Group), the project supports Malaysia's National Energy Transition Roadmap. SD Guthrie Bhd, formerly known as Sime Darby Plantation Bhd, is building a 404.7ha industrial zone in Perak, with 267.1ha dedicated to solar generation under its net-zero roadmap. YTL Power is also advancing a 500MW solar-powered data centre campus in Kulai, Johor—a project valued at over RM20bil in collaboration with NVIDIA. Supporting these headline initiatives are waste-to-energy facilities in Selangor and Sarawak, alongside hydropower and floating solar projects. Still, it is essential to differentiate between green infrastructure and ESG-linked finance: The former delivers environmental outcomes, while the latter ties financial terms to measurable ESG performance targets. A greener financial future Looking ahead, green and ESG-linked finance is poised to reshape capital flows and corporate priorities. However, it is not without fault lines. Uneven disclosure standards, greenwashing, and a growing gap between ESG rhetoric and results threaten to erode trust. While Malaysia makes strides, the market still grapples with questions of depth, integrity and real impact. Investors are watching but so are sceptics. As ESG becomes a powerful lever for raising capital, the line between genuine sustainability and opportunistic branding is blurring. The question remains—are ESG labels financing a better future or simply financing business as usual under a greener name?
Business Wire
20-06-2025
- Business
- Business Wire
Primaris REIT Publishes Inaugural Green Finance Framework
TORONTO--(BUSINESS WIRE)--Primaris Real Estate Investment Trust ("Primaris") (TSX: announced today that it has published its inaugural Green Finance Framework (the 'Framework'), under which it may issue green bonds, green loans or other related financial instruments. The framework outlines eight eligible categories for investment: green buildings, energy efficiency, renewable energy, sustainable water and wastewater management, clean transportation, climate change adaptation, pollution prevention and control, and the circular economy. "As a Board member and Chair of the Compensation, Governance, and Nominating Committee, I'm pleased to support the introduction of our Green Finance Framework,' said Anne Fitzgerald, Trustee. 'It's a practical step that aligns with our broader sustainability strategy and helps ensure we're investing in projects that support environmental progress in a thoughtful, responsible way." Rags Davloor, Chief Financial Officer added, "Today marks a significant step forward in our commitment to sustainability. With the publication of our Green Finance Framework, we are aligning our environmental goals and targets with business strategy. Proceeds from green financing will support our focus on emissions reduction, building certifications, energy and water management, and tenant sustainability impacts, while creating long-term value for our stakeholders." The Framework has been reviewed by Moody's Ratings, which issued a Second Party Opinion confirming the Framework's alignment to the International Capital Market Association Green Bond Principles (2021) and the Loan Market Association Green Loan Principles (2025). Primaris will report annually on the allocation and impact of financed projects under the Framework on its website, and/or in its corporate reporting. The Framework and Second Party Opinion are available on the ESG section of the Primaris website. Advisor Scotiabank acted as sole sustainability structuring agent on the Framework. About Primaris Real Estate Investment Trust Primaris is Canada's only enclosed shopping centre focused REIT, with ownership interests in leading enclosed shopping centres located in growing Canadian markets. The current portfolio totals 15.0 million square feet, valued at approximately $4.9 billion at Primaris' share. Economies of scale are achieved through its fully internal, vertically integrated, full-service national management platform. Primaris is very well-capitalized and is exceptionally well positioned to take advantage of market opportunities at an extraordinary moment in the evolution of the Canadian retail property landscape. Forward-Looking Statements Certain statements included in this news release constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable securities laws. The words "will", "expects", "plans", "estimates", "intends" and similar expressions are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Specific forward-looking statements made or implied in this news release include but are not limited to statements regarding: Primaris' intention and ability to complete an offering of green bonds, green loans or other related financial instruments, Primaris' expected investment in the eligible categories outlined herein and the expected sufficiency of proceeds from any such offering to fund these investments and to create long-term value for stakeholders. Forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements are not guarantees of future performance and are based on estimates and assumptions that are inherently subject to risks and uncertainties. Primaris cautions that although it is believed that the assumptions are reasonable in the circumstances, actual results, performance or achievements of Primaris may differ materially from the expectations set out in the forward-looking statements. Material risk factors and assumptions include those set out in Primaris' management's discussion and analysis for the three months and years ended December 31, 2024 and 2023, which is available on SEDAR+, and in Primaris' other materials filed with the Canadian securities regulatory authorities from time to time. Given these risks, undue reliance should not be placed on these forward-looking statements, which apply only as of their dates. Other than as specifically required by law, Primaris undertakes no obligation to update any forward-looking statements to reflect new information, subsequent or otherwise. For more information:
Zawya
11-06-2025
- Business
- Zawya
Infracorp showcases the Kingdom's first sustainable sukuk
Manama, Kingdom of Bahrain: Infracorp, a leading specialised company in investing in the infrastructure and sustainable development sector, has announced its participation in a United Nations workshop recently held in Bahrain to highlight the Kingdom's contribution to global efforts in financing sustainable development. The company presented its pioneering experience in issuing Bahrain's first sustainable sukuk. Infracorp took part in a panel discussion entitled 'Innovative Financing Instruments: SDG-Linked Bonds and Sukuk'. Ms. Zeeba Askar, Chief Sustainability and Investment Officer at Infracorp, delivered a presentation titled 'Bahrain's First Sustainable Sukuk'. She outlined the company's transition from green sukuk to a broader sustainable sukuk framework in line with international trends for financing projects with environmental and social impact. Ms. Askar confirmed that Infracorp's sustainable sukuk framework is fully aligned with the ICMA's Green, Social and Sustainability Bond Principles, supports Bahrain's Economic Vision 2030 and is consistent with the United Nations SDGs. She added that the framework's governance is underpinned by an independent, accredited external opinion to ensure transparency and credibility. The company has mapped key performance indicators, adopted a rigorous project-selection mechanism based on expected outcomes, and issues regular reports to measure each project's environmental and social impact. Commenting on the occasion, Ms Askar said: 'Our objective went beyond issuing a conventional finance instrument; it was about setting a standard for what a Sustainable Sukuk should represent. We carefully built a framework aligned with Bahrain's Economic Vision 2030 and the UN Sustainable Development Goals, with measurable KPIs mapped across every eligible project. The result is a Sukuk rooted in transparency, governed by rigor, and driven by real-world impact.' The workshop highlighted Bahrain's leading efforts in development finance, including Islamic finance, SDG-linked bonds and the fintech sector, ahead of the fourth International Conference on Financing for Development (FfD4), scheduled to take place in Seville, Spain, from June 30 to July 3, 2025. It brought together UN officials, public-sector representatives and private-sector partners to discuss the Kingdom's participation in the conference. FfD4 will serve as a pivotal platform to assess progress on global commitments to finance sustainable development and to address challenges that have emerged since the adoption of the Addis Ababa Action Agenda in 2015. The conference will gather high-level representatives from governments, international and regional organisations, financial and commercial institutions, the private sector, civil society and the United Nations system. About Infracorp: Infracorp B.S.C., is a company specialised in investing in the infrastructure and sustainability development sector, with a capital of USD 1.2 billion. Infracorp manages a portfolio of nearly USD 3 billion in infrastructure assets, including a 250 million square feet land bank in the GCC, North Africa and South Asia, which is earmarked for sustainable economic and social infrastructure. Infracorp's sustainability strategy is designed to generate strong long-term returns for investors through proactive management of ESG risks, and by embracing opportunities for value creation in the sustainable investment ecosystem. The Company focuses on investments in developing communities and investing in logistics and technologies that support sustainability and renewables, as well as social infrastructure assets across the education and healthcare sectors.
Business News Wales
06-06-2025
- Business
- Business News Wales
£100m Green Bond Programme Launched to Fund Biochar Innovation
ReGenEarth, initially borne out of Stephen Lansdown's former PE vehicle Earth Capital, a business that creates and manages ventures dedicated to sustainable renewable energy and circular economy processes, is launching a £100 million Green Bond Programme in conjunction with circular economy energy specialists RER. The bond programme will fund the deployment of technologies that integrate innovative biochar generation solutions into existing anaerobic digestion (AD) and biomass plants, each of which will include sophisticated feedstock and provenance tracking to ensure maximal pricing in the voluntary carbon credit markets. An Investor Day to formally launch the bond will be held at the Institute of Engineering & Technology in London from 6pm on Tuesday June 10. The event will feature partners BeZero and Onnu, and research partner Brunel University's Chemical Engineering Department. In addition to unveiling the Green Bond, the event will discuss carbon credits, carbon capture and Brunel's SeaCure CO2 capture project. Biochar, a form of organic carbon, is produced by heating organic matter in a low oxygen environment through a process called pyrolysis. By converting organic waste into renewable energy and valuable products such as biochar, ReGenEarth promotes resource efficiency and environmental sustainability, contributing to a greener economy, while reducing waste and sequestering carbon in the UK. The Bonds will be issued by RER Capital PLC, a special purpose financing vehicle (SPV) that was established specifically to finance businesses operating in the circular economy and CleanTech sectors. RER Capital PLC will channel capital into enterprises that prioritise resource efficiency, waste reduction, and sustainable innovation. The programme will be aligned with the ICMA Green Bond Principles. The proceeds of the Bonds will be secured against hard assets, including the existing AD sites and will be lent to a wholly-owned subsidiary of ReGenEarth, on the issuance date of the deal. The three-year Bond will pay a coupon of 12.5% and is due in 2030. Biochar closely resembles charcoal but also has additional, valuable properties. By locking carbon in the soil for centuries, it has proven value for soil regeneration, water retention and carbon sequestration, mitigating climate change by reducing greenhouse gas emissions. Its porous structure also retains nutrients very well, making fertilisers more effective. It also enhances the water retention of capacity of soil, supporting crop resilience. Biochar also fosters beneficial soil microbes, boosting ecosystem health and crop yields, essential for feeding a growing global population. ReGenEarth is working with a number of pioneers in the biochar space, including Onnu, its trusted partner in the development of biochar solutions from its engineering stable. Together with Onnu, ReGenEarth is pioneering innovative solutions that harness the power of biomass to create cleaner, more sustainable energy. Mickey Rooney, CEO of ReGenEarth, said: 'We're turning waste into climate wealth, pyrolysis has never been this cool. With 12.5% returns, locking carbon away for centuries, offering fertile ground for crop, climate and cash generation. The question you would have to ask yourself is why would you not want to be part of it?'
