Sunway City Iskandar Puteri is Malaysia's first green township to achieve MARC Gold grading

• Partnership with Alliance Bank pioneers sustainable financing model for township development.

JOHOR BAHRU (Oct 15): Sunway City Iskandar Puteri (SCIP), Sunway Group’s flagship integrated township in Johor, has become Malaysia's first green township to receive the Malaysian Rating Corporation Sdn Bhd’s (MARC) Gold grading, alongside the establishment of a comprehensive RM2 billion Sustainable Finance Framework.

The achievement, realised through a strategic green financing deal with Alliance Bank Malaysia Bhd (ABMB), “establishes a new national benchmark for responsible and sustainable urban development”, stated Sunway Property in a media release.

In the green financing deal, Sunway Iskandar Development Sdn Bhd (SIDSB) successfully completed a RM230 million sustainability bond issuance under its RM2 billion MTN Programme, with ABMB acting as the sole Principal Adviser/Lead Arranger, Lead Manager and Subscriber of the bonds.

“Working closely with SIDSB, ABMB played a key role as its Sustainability Structuring Adviser to develop their own Sustainable Finance Framework (Framework) which serves to align their financial practices with ESG goals, promoting responsible investment while managing risk to support sustainable economic development,” stated Sunway Property.

The bond will support the next phase of its Pendas development. Covering 1,300 acres of the township’s total 2,000-acre landbank, proceeds from the programme will be directed toward infrastructure and land development, working capital and general corporate purposes, all aligned with rigorous sustainability criteria.

“This collaboration reinforces Sunway’s position as a leading sustainable developer and highlights ABMB’s commitment to ESG-driven financing,” added Sunway Property.

"The MARC Gold grading provides independent validation of our sustainability commitments and represents a transformative moment for sustainable township development in Malaysia. By establishing the first Sustainable Finance Framework for a green township, we are demonstrating that large-scale urban development can align with the highest ESG standards while remaining commercially viable," said Gerard Soosay, CEO of Sunway Property (Southern Region).

“This achievement reinforces our vision of creating communities that are not only economically vibrant but also environmentally responsible and socially inclusive. It’s a vision we have long championed as Malaysia’s Master Community Developer, and it reflects our ongoing commitment to building sustainable townships that are truly With You for Generations,” he added.

“As the Bank For Life, we are committed to supporting businesses on their sustainability journey. As the adviser for this transaction, we are grateful to Sunway for their trust and we are delighted that our conviction is shared by the independent assessment agency, MARC, who has accorded its highest sustainability grading to this project. This brings us closer to our aim of creating positive change and impact for the environment and the communities we serve,” said Teoh Chu Lin, Alliance Bank Group chief corporate & institutional banking officer.

Unlike conventional gradings that evaluate individual buildings or single-purpose facilities, MARC’s assessment of SCIP encompasses the environmental and social impact of planned developments across the entire township, alongside governance, risk management frameworks and project selection processes.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.