From left: RHB Banking Group managing director and group chief executive officer Datuk Mohd Rashid Mohamad, RHB group community banking managing director Jeffrey Ng Eow Oo, CGC chief business officer Sean Tan and CGC president and chief executive officer Datuk Mohd Zamree Mohd Ishak.
KUALA LUMPUR: RHB Bank
Bhd has signed a portfolio guarantee worth RM400 million with Credit Guarantee Corporation Malaysia Bhd.
This landmark agreement includes a RM100 million allocation to the Low Carbon Transition Facility (LCTF) 1, marking Malaysia’s first LCTF portfolio guarantee aimed at assisting small and medium enterprises (SMEs) in transitioning to a low-carbon economy.
RHB Banking Group managing director and group chief executive officer Datuk Mohd Rashid Mohamad said the partnership with CGC represents a major step forward in empowering SMEs to embrace sustainability.
"By providing essential financial support and risk coverage, we enable SMEs to adopt green practices and contribute to Malaysia’s green growth agenda.
"This collaboration is vital to achieving our goal of delivering RM1.6 billion in green financing to our customers by year-end, of which we have achieved 59 per cent as at June 2024,” he said in a joint statement today.
Mohd Rashid also said that the group has engaged over 600 SMEs in the second quarter of 2024 to promote ESG awareness and nurture a sustainable business ecosystem.
As of June 2024, the group has approved more than RM411 million for SMEs under Bank Negara Malaysia’s LCTF.
Meanwhile, CGC president and chief executive officer Datuk Mohd Zamree Mohd Ishak said financial
institutions (FIs) and development financial institutions (DFIs) play a critical role in supporting the LCTF by providing financing at competitive rates.
CGC supports financial institutions and development finance institutions by providing its guarantee, which reduces their risk. This encourages them to extend greater outreach to Malaysian micro-SMEs (MSMEs).
"By joining forces, FIs, DFIs and CGC make it easier for MSMEs to secure the funding needed to adopt sustainable practices and contribute to Malaysia’s economic growth,” he added.
Under the agreement, SMEs will benefit from up to 80 per cent guarantee coverage from CGC. Additionally, financing options through LCTF are available for amounts up to RM5 million covering four key areas: SME Green Renewable Energy Financing, SME Green Commercial Property Financing, SME Green Working Capital Financing, and SME Green CAPEX Financing for Equipment and Machinery.
-- BERNAMA
TAGS: RHB, CGC, financing, SMEs
