RHB Banking Group and Tenaga Nasional Bhd (TNB) will collaborate to expedite the adoption of renewable energy and energy efficiency solutions among small and medium enterprises (SMEs) and individuals.
The official exchange of documents was witnessed by Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad during the Energy Transition Conference.
The event brought together local and international thought leaders, industry players, and policymakers to formulate solutions to accelerate energy transition effectively and form collaborations.
The partnership complements the recently launched National Energy Transition Roadmap towards empowering businesses, particularly SMEs, and individuals with the knowledge, tools and solutions needed to transition to greener practices.
In the collaboration, TNB will provide technical advice on energy efficiency and renewable energy solutions, including supplying and installing solar PV systems, to SMEs, prioritising RHB’s SME customers and TNB’s clients and business partners.
RHB will offer Green Financing Solutions comprising SME Green Renewable Energy Financing, SME Green Construction Financing, SME Green Commercial Property Financing, SME Green Working Capital Financing and SME Green Capital Expenditure Financing.
RHB and TNB will jointly organise sustainability roadshows starting in the third quarter of 2023 to engage SMEs in major Malaysian cities.
In a statement, RHB Banking Group managing director and chief executive officer Mohd Rashid Mohamad said, “We are proud to be the first financial institution to collaborate with Tenaga Nasional Bhd in nurturing, supporting and advancing SMEs in their sustainability journey.
“This collaboration aligns with our Sustainability Strategy and Roadmap to help SMEs build a sustainable business by adopting greener practices.”
Mohd Rashid added, “As of June 2023, the Group has approved over RM870mil in SME Sustainable Financing, of which RM103mil was Bank Negara Malaysia’s Low-Carbon Transition Facility (LCTF).
“We have also achieved more than RM5bil in Sustainable Financial Services against our 2023 target of RM9bil and a cumulative achievement of over RM16bil, equivalent to almost 85% of our RM20bil target.
“We are also expanding our Sustainable Finance team with ESG (environmental, social and corporate governance) sector specialists whose expertise covers a variety of industries, including renewable energy, oil palm, healthcare and property.
“Ultimately, we aim to work closely with our strategic partners, such as TNB and other relevant industry players, to advance and facilitate SMEs in their sustainability journey.”
Tenaga Nasional Bhd president and chief executive officer Datuk Baharin Din said, “As energy transition gains momentum, the demand for green financing is set to increase significantly due to the growing adoption of green energy solutions in the country.
“Green financing and investment play a central role in TNB’s commitment to advancing the energy transition, developing sustainable infrastructure and fostering innovation to promote a low-carbon economy.”
He said TNB was delighted to join forces with RHB for maiden green financing facilities to encourage rooftop solar installations among SMEs and residential customers who were looking for long-term savings on their electricity bills, fostering a low-carbon economy.
“Both TNB and RHB share a common vision of assisting SMEs and homeowners in transitioning to green energy solutions for a more sustainable future. We eagerly anticipate collaborating with like-minded financial institutions to bolster Malaysia’s endeavours in establishing a thriving green finance ecosystem,” added Baharin.