reNIKOLA issues world’s first Climate Bonds Initiative-certified sukuk

PETALING JAYA: Pure play renewable energy company reNIKOLA Holdings Sdn Bhd is issuing up to RM390 million in sukuk that has been certified by the Climate Bonds Initiative (green sukuk).

The green sukuk has been independently verified by RAM Sustainability Sdn Bhd to have complied with the science-based Climate Bonds Standard and Certification Scheme (Climate Bonds Standard).

Climate Bonds Initiative is an independent international not-for-profit organisation working to mobilise financial markets for climate change solutions. The Climate Bonds Initiative carries out market analysis, policy research, market development; advises governments and regulators; and administers a global Climate Bonds Certification Scheme.

Meanwhile, the Climate Bonds Standard is an overarching science-based, multi-sector certification scheme for investments that address the challenge of climate change and are consistent with the goals of the Paris Climate Agreement.

The managing director of reNIKOLA, Boumhidi Adel, said the company is proud to be the first green sukuk issuer in the world to have the Climate Bonds Initiative certification and it demonstrated its dedication to global best practice in climate finance.

This is reNIKOLA’s second green sukuk in three years and underscores its ability to mobilise capital for green projects to drive Malaysia’s energy transition goals forward.

RAM Sustainability CEO Gladys Chua said the green sukuk by reNIKOLA is the first climate sukuk certified by the Climate Bonds Initiative in Malaysia and the world, marking a major milestone for the country towards encouraging more green, social or sustainable assets in the future.

In congratulating reNikola, Climate Bonds Initiative CEO Sean Kidney said the certification not only acknowledges reNIKOLA’s commitment to climate finance but also sets the standard for best practices in this evolving space.

“The global shift towards sustainable investments is gaining momentum, and this issuance demonstrates the increasing interest in financing projects that align with climate goals. 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.