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Malaysia

OCBC Malaysia leads the way in Islamic sustainable financing for PNB

Image Credits: UnsplashImage Credits: Unsplash
  • OCBC Malaysia has launched a GBP210 million Islamic sustainable financing facility for PNB, emphasizing its commitment to green financing.
  • The bank has pioneered several innovative sustainable financing instruments, including the world's first Islamic Multi-Currency Sustainability-linked Financing.
  • OCBC's comprehensive approach to sustainability includes promoting environmentally friendly practices and collaborating with partners on green initiatives.

OCBC Malaysia has once again demonstrated its leadership in the financial sector by pioneering an Islamic sustainable financing facility for Permodalan Nasional Berhad (PNB). This landmark initiative, valued at GBP210 million, is a testament to OCBC's unwavering commitment to promoting environmental sustainability and responsible financing practices.

The newly inaugurated Islamic Green Financing facility is designed to support PNB's green projects, aligning with the broader goals of sustainable development and environmental stewardship. This move is part of OCBC's broader strategy to integrate Environmental, Social, and Governance (ESG) criteria into its financing solutions, thereby fostering a greener and more sustainable economy.

OCBC Malaysia's CEO, Datuk Ong Eng Bin, highlighted the significance of this initiative, stating, "This facility not only underscores our commitment to sustainable finance but also sets a new benchmark for Islamic financing in the region. We are proud to support PNB in their green initiatives and look forward to seeing the positive impact of this collaboration."

OCBC's Commitment to Sustainable Finance

OCBC has long been a proponent of sustainable finance, with a robust framework that integrates ESG considerations into its lending and investment decisions. The bank's sustainable financing product suite includes both conventional and Islamic financing solutions, catering to a diverse range of clients and industries.

One of the key highlights of OCBC's sustainable finance portfolio is the world's first Islamic Multi-Currency Sustainability-linked Financing for Axiata Group. This innovative financing solution has set a precedent in the industry, showcasing OCBC's ability to deliver bespoke sustainable financing instruments that meet the unique needs of its clients.

Pioneering Green Bonds and Sukuk

OCBC has also been at the forefront of pioneering green bonds and sukuk in Malaysia. The bank structured Malaysia's first ASEAN Sustainability SRI Sukuk for Edra Solar and the country's first Sustainability-linked Bond for Sunway REIT. These instruments have not only facilitated the flow of capital towards green projects but have also enhanced the ESG credentials of the issuers, enabling their inclusion in prominent ESG indices such as the FTSE4Good Bursa Malaysia Index.

Promoting Environmentally Friendly Practices

Beyond financing, OCBC has implemented several initiatives to promote environmentally friendly practices within its operations. The bank has established a Branch ESG Committee to drive environmental initiatives across its branch network. Measures such as replacing conventional lighting with energy-efficient LED lights, recalibrating vending machines for energy savings, and encouraging the use of e-Statements have significantly reduced the bank's carbon footprint.

OCBC's efforts in sustainable procurement are also noteworthy. The bank's Supplier Code of Conduct ensures that all suppliers adhere to high standards of business integrity, human rights, and environmental protection. Additionally, the bank continues to purchase biodegradable service ware and FSC-certified paper for office use, further reinforcing its commitment to sustainability.

A Collaborative Approach to Sustainability

OCBC's collaboration with PNB is a prime example of how financial institutions can work together to drive sustainable growth. By providing innovative financing solutions that align with ESG criteria, OCBC is enabling PNB to undertake green projects that contribute to environmental sustainability and social well-being.

The bank's partnership with Maybank Asset Management (MAM) for the tree planting initiative is another testament to its collaborative approach. For every investor in MAM's global sustainable/ESG funds distributed by OCBC, a tree is planted, contributing to reforestation efforts and the Corridor of Life Project along the Lower Kinabatangan River in Sabah.

OCBC Malaysia's pioneering Islamic sustainable financing facility for PNB marks a significant milestone in the journey towards a greener and more sustainable future. By integrating ESG criteria into its financing solutions and promoting environmentally friendly practices, OCBC is setting a new standard for responsible financing in the region. As the demand for sustainable finance continues to grow, OCBC's innovative approach and collaborative efforts will undoubtedly play a crucial role in shaping a sustainable economy.

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