The Japanese company issued an SLP in September, while Sunway priced two SLPs in October. These bonds received equity treatment from Asian rating agencies.
Sunway’s SLPs pay five basis points per annum of their face value into a liability account if its sustainability performance targets are missed. This kitty will be used to pay for green building accreditation, green or renewable energy, and to upgrade low-carbon assets once the SLPs are redeemed.
This structure received dual equity credit treatment from RAM Rating Services Berhad, the largest credit rating agency in ASEAN. This could open the door for more SLP sales by other issuers in future.
