Global Vision Logistics (GVL) has established a Murabahah-based RM1.5 billion (US$331.63 million) ASEAN Green SRI Sukuk program to fund the development of its Shah Alam international logistics hub (SAILH). The first tranche of the Sukuk, an unrated RM620 million (US$137.07 million) Islamic medium-term note, is set to be issued in Q2 this year.
UOB Malaysia is the principal advisor, lead arranger and joint lead manager for the program, while AmInvestment Bank is the joint lead manager.
“The establishment of the ASEAN Green SRI Sukuk Programme marks a significant milestone for GVL … Once the SAILH is completed, it will be one of the region’s largest logistic hub that enhances the supply chain for trade and commerce, and will improve the competitiveness of Malaysia’s logistics sector,” Oh Kim Sun, the chairman of GVL, commented.
On the 3rd March 2023, MARC Ratings assigned a ‘Bronze’ impact assessment to GVL’s Sustainability Financing Framework, which includes its SRI Sukuk Framework.
“In arriving at the framework’s ‘Bronze’ assessment, MARC Ratings assessed the impact of the use of proceeds to be significant with clear environmental benefits that directly support five of the United Nations [UN]’s 17 Sustainable Development Goals [SDGs],” the rating agency said in a statement.
The four-story warehouse complex is targeted to be completed in phases by 2028 with Phase 1 of the development to be completed by mid-2025. The hub is expected to attain a number of green ratings including the Malaysian Real Estate Housing Development Authority’s ‘GreenRE’ silver rating and the Excellence in Design for Greater Efficiencies (EDGE)’s advanced and EDGE zero-carbon certificates.
According to Oh, SAILH incorporates sustainable features including the use of low-carbon building materials during construction to the installation of solar panels, efficient water fittings and energy-efficient lightings, elevators and air-cooling systems to achieve its targeted green certificates.
Also commenting on the establishment of the Sukuk program, UOB Malaysia CEO Ng Wei Wei noted that the Sukuk program aligns with the bank’s net-zero commitments and the bank is motivated to develop impactful solutions to help its clients decarbonize.
GVL is a joint venture company with four shareholders, namely Hartamas Mentari, Aspen Vision Properties, Swift Haulage and Ideal Force with equity stakes of 30%, 30%, 25% and 15% respectively.
The principal activities of the companies are property investment holding, property development, integrated logistics and private equity and investments while GLV’s principal business activities include general warehousing and storage, property development and investment holding.