KUALA LUMPUR: Permodalan Nasional Bhd (PNB) has launched its inaugural Sustainability-Linked Islamic Financing (SLF) facilities with OCBC Bank (M) Bhd (OCBC Malaysia) as the sole sustainability structuring adviser.
In a statement, OCBC Malaysia said the bank collaborated closely with PNB to align its existing facilities with the SLF structure (SLF Facilities) under PNB’s sustainability framework.
This landmark transaction marks PNB’s inaugural SLF Facilities, underscoring its strong commitment to sustainability through two dual-currency financing facilities denominated in ringgit and US dollars, respectively.
Since launching its Sustainability Framework and 10 ESG Commitments three years ago, PNB has embedded sustainability at the core of its growth strategy. The SLF will be pivotal—not only for cost optimisation but also as a driver for ESG progress, with financing costs tied to key performance indicators (KPIs).
PNB’s 2030 targets include investing RM10bil in Green and Transition Assets and cutting investment emission intensity by 30%. These commitments lay a solid foundation for future SLF-structured financings.
“As a government-linked fund management company, this initiative demonstrates our determination to not only integrate sustainability considerations into our investment decision-making, but to ensure it becomes a driver of growth, resilience, and long-term value creation.
“Our collaboration with OCBC Malaysia embodies our shared values and strong commitment to environmental stewardship while making a meaningful contribution to global sustainability goals,” PNB group chief investment officer Hanizan Hood said.
Managing director, senior banker, and head of investment banking Tan Ai Chin said this landmark transaction features a ‘double-green’ structure, which seamlessly integrates Islamic and Sustainable Finance.
“It stands as a strong testament to our continuous commitment to deliver impactful, innovative financing solutions that drive long-term ESG progress while championing the growth of Islamic Finance.
“The SLF Facilities have embedded key sustainability financing parameters which will financially incentivise PNB to continue with its ongoing efforts in advancing its ESG commitments,” she said.
“This is our second sustainable financing solution for PNB as OCBC Malaysia was also the Sole Lead Arranger and Sustainability Structuring Adviser for a maiden Green Islamic Facility of GBP210.0 million to finance the refurbishment of PNB’s investment property in London which achieved financial close in mid-2024.”
