KUALA LUMPUR: HSBC Amanah Malaysia Bhd (HSBC Amanah) is providing RM200 million financing to support Yinson Holdings Bhd (Yinson) in building sustainable business on a long term.
Under the sustainability-linked financing (SLF), HSBC Amanah is working with Yinson in reinforcing the bank’s commitment to support the shift to a low carbon economy.
HSBC Amanah chief executive officer Oz Ahmed said the financial services sector has a critical role to play in supporting sustainable business activities.
"There is an impetus on the industry to change the nature of capital and increasingly direct it in more sustainable ways.
"Islamic banking is well placed to assist in this area. Within Malaysia, this is further supported by BNM’s Value-Based Intermediation initiative which aims to have Islamic financial institutions create greater value and impact," he said in a statement.
Yinson, which is an energy solutions provider with business activities in offshore production and more recently, renewables, has a long term vision of building a sustainable business that will positively impact the world’s energy landscape and the communities where it operates.
The RM200 million financing will be a major milestone in supporting this vision.
"HSBC Amanah is committed to transforming into a sustainable banking entity and this transaction exhibits part of the work that is being done to achieve this goal.
"Significantly, the new financing option will be pivotal to developing the landscape of sustainable banking products available in Malaysia," Oz said.
The SLF allows customers to benefit from improved pricing upon achieving agreed sustainability performances target.
By introducing this tiered pricing product feature, customers will be eligible for a discount on the financing rate of the facility if they are able to meet ambitious targets that have been agreed upon related to their environmental, social and governance rating, HSBC Amanah noted.
Yinson group chief executive officer Lim Chern Yuan said the company believe that sustainability-linked financing will play a major part in encouraging businesses to strengthen their environmental, social and governance practices, thereby creating a more sustainable future for everyone.
"Sustainability is one of Yinson’s core values and a key focus for Yinson. We are honoured to have been selected by HSBC Amanah to be an early adopter of this sustainability-linked financing arrangement," he said.
HSBC Group aspires to be a leader in sustainable financing, managing and shaping the shift to a low-carbon world.
The bank has set out a series of commitments globally in support of this goal, including a pledge to provide US$100 billion to sustainable financing and investments by 2025.