KUALA LUMPUR: Malayan Banking Bhd
(Maybank) is granting a sustainability-linked loan (SLL) amounting to US$150 million (US$1=RM 4.24) to Austria Technologie & Systemtechnik Malaysia Sdn Bhd (AT&S).
In a statement today, the bank said the landmark transaction marks the first SLL issued by a Malaysian and Southeast Asian commercial bank to AT&S, and the first such facility by a local lender to a multinational company in Malaysia’s semiconductor sector.
Maybank said the financing would support the development of AT&S’s first high-end integrated circuit (IC) substrate plant at Kedah’s Kulim Hi-Tech Park that will include state-of-the-art equipment and closed-loop recycling systems, adhering to AT&S’s comprehensive sustainable energy framework.
The facility will produce advanced IC substrates, essential components to meet surging demand for high-performance data processors, data centres, and artificial intelligence (AI) infrastructure.
The targets attached to the SLL include reducing annual greenhouse gas emissions by 31 per cent by March 31, 2028, using fiscal year 2022 as the baseline.
Maybank Global Banking Group chief executive officer Datuk John Chong said from 2021 to the end of the first quarter of 2025, Maybank mobilised RM125.46 billion in sustainable finance across ASEAN, surpassing its RM80 billion target by 2025.
"We are pleased to back AT&S in developing its first IC substrate facility in Kulim that further strengthens Malaysia’s role in the global semiconductor value chain.
"The financing aligns with our strategic focus on the semiconductor ecosystem in Southeast Asia, where we have identified financing opportunities,” he said.
AT&S president/chief executive officer Michael Mertin said the company’s sizable investment of over US$1 billion in Malaysia follows the demand from its global clients, and reflects its confidence in Malaysia’s semiconductor ecosystem and its growth trajectory.
"It also aligns with the ambitions of Malaysia’s National Semiconductor Strategy and the New Industrial Master Plan 2030 to position the country as a leading hub for advanced manufacturing,” he said. - Bernama
