MARC Ratings has assigned a "Gold" Impact Assessment to Sunway Healthcare Treasury Sdn Bhd’s Sustainability Financing Framework (the Framework). Sunway Healthcare Treasury is a wholly-owned subsidiary of Sunway Healthcare Holdings Sdn Bhd (SHH) where SHH is the immediate holding company of Sunway Healthcare Group (SHG). The Framework sets out the guidelines for issuances of financing instruments that will finance green, social and sustainability projects falling under four categories: access to essential and latest technology in healthcare services, green buildings, energy efficiency and renewable energy.

MARC Ratings is of the opinion that the Framework is aligned with the core components of the Green Bond Principles and Social Bond Principles of the International Capital Markets Association, the ASEAN Green Bond Standards and ASEAN Social Bond Standards of the ASEAN Capital Markets Forum, the Green Loan Principles and Social Loan Principles of the Loan Market Association, and the Securities Commission Malaysia’s Sustainable and Responsible Investment (SRI) Sukuk Framework.

SHG is an integrated private healthcare provider that operates a network of hospitals and ancillary services such as ambulatory care centres, home healthcare and traditional and complementary medicine centres. SHG opened Sunway Medical Centre Velocity, its second tertiary hospital, in September 2019 and Sunway Medical Centre Penang in November 2022, in response to the success of Sunway Medical Centre (SMC) in Sunway City. SHG plans to expand across Malaysia with hospitals in Sunway Kota Damansara (Selangor), Iskandar Puteri (Johor), Ipoh (Perak), Kota Bahru (Kelantan), and Paya Terubong (Penang) as part of its aim to give more communities the access to high-quality healthcare. SHG will become one of the largest healthcare organisations in Malaysia as a result of this growth, with a total bed capacity of more than 3,500 across its network of hospitals.

Proceeds raised from the financing instruments will be channelled towards Eligible Projects as set forth within the Framework. Currently, there are four greenfield new projects under SHG, namely SMC Penang which was completed in August 2022 and three other projects that are pending construction, namely SMC 4, SMC Damansara and SMC Ipoh. SHG also plans to acquire Sunway Medical Centre Velocity Phase 2 once its construction is completed.

In arriving at the Framework’s Gold assessment, MARC Ratings assessed the impact of the Use of Proceeds to be significant with clear social and environmental benefits that directly support nine of the United Nations’ 17 Sustainable Development Goals.

The full Sustainability Financing Framework Assessment can be accessed here.

Contact:

+603-2717 2958/ marc@marc.com.my