KUALA LUMPUR: Hong Leong Bank Bhd (HLB) is offering financing up to RM1mil per small and medium enterprise (SME) looking to invest in renewable energy as it helps to reduce operational expenses and carbon print.
In a statement yesterday, the bank said the programme known as ‘HLB SME Solar Financing’ is specially designed for Malaysian SMEs to install small-scale solar photovoltaic (PV) systems for their businesses.
“This program offers a financing amount of up to RM1mil per SME customer with a maximum loan tenure of seven years at an attractive interest rate, ” it said.
With many businesses looking to operate with greater cost efficiency, HLB group managing director and chief executive officer Domenic Fuda (pic) said SMEs can reduce costs on electricity bills through adopting renewable energy technologies using solar PV.
“The new solar financing program will not only help our clients in reducing their operating expenses and carbon footprint in the long run, but also contribute towards building a vibrant and sustainable ecosystem while supporting the national initiative to increase the share of renewable energy of the country’s power mix to 20% by 2025, ” he added.
Meanwhile, HLB managing director of business and corporate banking Yow Kuan Tuck noted that the initial allocation of RM300mil for the new solar financing facility would also allow more businesses to look at sustainability as an investment that brings long-term competitive advantages.
“We have received a significant number of inquiries from our SME customers on financing for small-scaled solar PV installations. The demand is there and it also shows that many businesses are keen in adopting greener and cleaner energy sources for sustainability and concurrently be more cost efficient by installing solar PV panels on the rooftops of their business premises.
“The introduction of ‘HLB SME Solar Financing’ is well-timed as the on-going economic challenges caused by Covid-19 have made SMEs take steps to recover and rebuild their business, which includes cushioning for future rise in energy costs as well as meeting the rising demand of conscious consumerism for sustainable business, ” he added.
Under this programme, the bank is empaneling seven leading local service providers namely Plus Solar Systems Sdn Bhd, Solarvest Holdings Bhd, Mattan Engineering Sdn Bhd, Samaiden Sdn Bhd, ERS Energy Sdn Bhd, Pekat Solar Sdn Bhd and Gading Kencana Sdn Bhd which will provide a comprehensive one-stop solar PV installation, commissioning, operations and maintenance services to the bank’s customers.