[MARC] MARC Ratings assigns “Gold” Impact Assessment to Sentral REIT’s Sustainable Finance Framework

MARC Ratings has assigned a “Gold” Impact Assessment to Sentral REIT’s (SENTRAL) Sustainable Finance Framework. The framework was established to outline how the real estate investment trust (REIT) plans to undertake sustainable finance transactions to deliver environmental and social benefits.

SENTRAL’s investment objective is to acquire and invest in commercial properties to achieve long-term growth and sustainable income distribution for its unitholders. To date, the REIT has 10 offices and retail space in the Klang Valley and Penang under its portfolio.

The framework was developed with an integrated approach, encompassing the use of proceeds and sustainability-linked components which can be used independently on a case-by-case basis. Proceeds raised from the use of proceeds instruments will be channelled towards eligible green and social projects listed in the framework. Conversely, sustainability-linked instruments align SENTRAL’s sustainability ambitions with its business strategies, supported by three key performance indicators that are relevant, core, and material to the company’s primary business.

We opine that the framework is aligned with the core components of the applicable guidelines, frameworks, and principles published by the Securities Commission Malaysia, ASEAN Capital Markets Forum, and the International Capital Market Association, among others.

The Gold assessment of the framework reflects the view that the sustainable finance transactions would provide relevant social and environmental benefits that support seven of the 17 United Nations Sustainable Development Goals.

+603-2717 2963/ marc@marc.com.my