SUNWAY CITY ISKANDAR PUTERI BECOMES MALAYSIA’S FIRST GREEN TOWNSHIP TO ACHIEVE MARC GOLD GRADING WITH RM2 BILLION SUSTAINABLE FINANCE FRAMEWORK

SUNWAY CITY ISKANDAR PUTERI BECOMES MALAYSIA’S FIRST GREEN TOWNSHIP TO ACHIEVE MARC GOLD GRADING WITH RM2 BILLION SUSTAINABLE FINANCE FRAMEWORK

Landmark partnership with Alliance Bank pioneers sustainable financing model for township development

Johor Bahru, 15 October 2025 – Sunway City Iskandar Puteri (SCIP), Sunway Group’s flagship integrated township in Johor, has achieved a historic milestone as Malaysia’s first green township to receive the Malaysian Rating Corporation Sdn Bhd’s (MARC) coveted Gold grading, alongside the establishment of a comprehensive RM2 billion Sustainable Finance Framework. The groundbreaking achievement, realised through a strategic green financing deal with Alliance Bank Malaysia Berhad (“ABMB”), establishes a new national benchmark for responsible and sustainable urban development.

In a landmark green financing deal, Sunway Iskandar Development Sdn Bhd (“SIDSB”) successfully completed a RM230.0 million sustainability bond issuance under its RM2.0 billion MTN Programme, with ABMB playing a pivotal role 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.

The Framework is aligned with the core components of key guidelines and principles issued by the Securities Commission Malaysia, ASEAN Capital Markets Forum, and the International Capital Market Association, among others – to help channel sustainable funding towards the development of Sunway City Iskandar Puteri which has been provisionally certified as a green township by GBI.

In particular, 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.

“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, Chief Executive Officer 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.” 

Expressing optimism about the strategic partnership, Alliance Bank Group Chief Corporate & Institutional Banking Officer Teoh Chu Lin said, “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.”

The sustainability credentials of both the framework and the bond have been independently verified by MARC, with the Gold grading representing the highest sustainability grading achievable. This makes Sunway City Iskandar Puteri the first MARC Gold-rated township in Malaysia, an unprecedented achievement for a masterplan development.

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.

The previous MARC Gold gradings have been awarded to individual projects such as Sunway healthcare facilities and Sunway South Quay Sdn Bhd, making this township-wide recognition particularly significant. 

Sustainability has always been at the heart of Sunway’s DNA, shaping how the Group builds, operates and innovates across its communities. As the property arm of Sunway Group, Sunway Property continues to integrate sustainable design and development principles across all its townships, guided by the vision of advancing the United Nations Sustainable Development Goals (UN-SDGs). This ensures that environmental, social and governance values remain deeply embedded in every project.

As part of its vision as the Master Community Developer, Sunway City Iskandar Puteri – a masterplan that integrates nature and innovation – is uniquely positioned to lead the next generation of smart sustainable townships in Malaysia. The new Sustainable Finance Framework not only reaffirms Sunway’s ability to access sustainable capital markets but also holds the development accountable to clear, measurable impact targets which reinforces Sunway’s commitment to long-term ESG excellence. 

Moving forward, SCIP will continue to monitor market response, ESG performance and stakeholder feedback, ensuring that future issuances under the framework remain aligned with the township’s long-term vision and Sunway Group’s broader mission of creating communities that are liveable, inclusive and environmentally resilient for future generations.

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