OCBC Al-Amin eyes more green financing this year

27 May 2020 / 10:57 H.

PETALING JAYA: OCBC Al-Amin Bank Bhd is looking at bringing its value-based intermediation (VBI) to a new level with more “green” financing projects this year.

VBI is an industry-driven sustainability initiative aimed at strengthening the roles of Islamic banking institutions in generating a positive and sustainable impact on the economy, community and environment.

In a statement, CEO Tuan Syed Abdull Aziz Syed Kechik (pix) said OCBC Al-Amin will continue to pay particular attention to sustainable financing opportunities as part of its long-term growth strategy within the established responsible financing framework.

“At the moment we are focusing on financing renewable energy projects which include large scale solar photovoltaic and rooftop solar power plants. While these types of financing are more project specific, we are also looking into providing sustainability-linked financing to our customers for their general corporate purposes.

“The sustainability-linked financing recognises and incentivises our customers for meeting specific sustainability targets in relation to their environmental, social and governance initiatives,” he said.

Earlier this month, the bank had announced its lead role in arranging the first-of-its-kind syndicated multi-currency shariah-compliant sustainability-linked set of financing facilities of US$800 million for Axiata Group Bhd - the first sustainability-linked Islamic financing effort undertaken in Malaysia.

Last year, OCBC Al-Amin also acted as Edra Solar Sdn Bhd’s sukuk sustainability framework adviser and lead arranger, creating new benchmarks in the sukuk market by successfully pricing Malaysia’s first Asean Sustainability SRI sukuk of RM245 million.

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