Unity Group unveils carbon credit-backed climate sukuk

Unity Group Holdings International Limited has completed the registration of its Project-Idea-Note (PIN) for carbon credits entitlement, following a vetting process by Climate Adviser Tek Securities. This enables the group to be accredited with carbon credits generated from its Energy Management Contract (EMC) business, with an estimated 42,400 tonnes of carbon credits annually from existing deployed EMC projects for an initial 10-year period. These credits, which are tradable on recognized platforms (currently trading at approximately €73 per tonne in Europe), will represent a new asset class for the group without additional production costs.

Unity Labuan has also appointed Tek Securities as financial adviser for a proposed RMB200,000,000 private Climate Sukuk issue, endorsed by Labuan FSA. This sukuk, a 5-year Islamic financial certificate, aims to finance the expansion of the EMC business. It is distinctly structured to utilize carbon credits, generated by the application of the sukuk proceeds, to fulfill both fixed-rate paid-in-payment obligations and the repayment of the face value, with any shortfall covered in cash.

The Climate Sukuk, secured by applicable carbon credits and the group’s existing energy-saving light tubes, is touted as the world's first financial instrument to use carbon credits for payment obligations, creating a self-sustaining regenerative financing system for energy-saving initiatives. The Climate Sukuk will not be distributed in Hong Kong or listed on any exchanges, and shareholders are advised to exercise caution as details are being finalized.