OCBC Malaysia pioneers Islamic sustainable financing for PNB

KUALA LUMPUR: OCBC Bank (Malaysia) Bhd has pioneered the inaugural Islamic Sustainable Financing Facility for Permodalan Nasional Bhd’s (PNB) wholly-owned subsidiary, PNB Jersey Ltd, with a £210.0 million (£1=RM5.99) Islamic Green Financing Facility (Green Facility).

OCBC Malaysia is the sole lead arranger and sustainability structuring adviser for the green facility to finance the refurbishment of PNB’s investment property located at One Exchange Square, London.

The bank shared that the property is an office tower which has been designed to attain the "Excellent” rating under the Building Research Establishment Environmental Assessment Method (BREEAM), with a targeted National Australian Built Environment Rating System (NABERS) UK five-star rating post-completion.

This signifies PNB’s environmental, social and governance (ESG) commitment towards investing in green and transition assets.

In a statement today, OCBC Malaysia said upon completion of the refurbishment in 2026, the property is expected to achieve net-zero carbon emissions in operations through a combination of energy efficiency, electrification and on-site energy generation.

Its managing director, senior banker and head of investment banking, Tan Ai Chin, pointed out that the OCBC Group is the existing lender supporting PNB in the acquisition of the property.

"In addition to the Shariah-compliant structure, which complements the green element of the facility, PNB’s commendable efforts in doing good to support the local community as part of the project development truly demonstrate its strong commitment to the best ESG practices.

"This collaboration with PNB exemplifies OCBC Malaysia’s relentless effort in further advancing the adoption of sustainable and responsible best practices amongst our business partners to create a positive social, environmental and economic impact on communities while also ensuring a more sustainable future," said Tan.

Meanwhile, PNB's chief investment officer, private and strategic investments Rick Ramli commented that the property's refurbishment is one important part of PNB’s efforts towards investing in green and transition assets.

He said PNB is committed to ensuring a progressive transition towards a greener and sustainable future for long-term resilience, amidst a changing global investment landscape.

"Our partnership with OCBC Malaysia for this maiden Islamic sustainable financing demonstrates our shared value to create a more environmentally responsible, socially inclusive, and low-carbon future

not only on the domestic front but also globally," he said. - Bernama