KUALA LUMPUR: Permodalan Nasional Bhd has secured a RM1.26 billion (£210.0 million) Islamic sustainable financing facility from OCBC Bank (Malaysia) Bhd to refurbish an office tower in London to the highest green certification standard.
In a statement today, OCBC Malaysia said it is sole lead arranger and sustainability adviser for the green facility to finance the refurbishment of One Exchange Square, 175 Bishopsgate, London.
The bank said the office tower is designed to achieve an "Excellent" rating under the Building Research Establishment Environmental Assessment Method (BREEAM) with a targeted NABERS UK 5-Star Rating post-completion, signifying PNB's environmental, social and governance (ESG) commitment towards investing into green and transition assets.
Upon completion of the refurbishment in 2026, the property is expected to achieve net-zero carbon emissions in its operations through a combination of energy efficiency, electrification and on-site energy generation.
"PNB has established 10 ESG commitments in our Sustainability Framework launched in 2022, which include investing up to RM10.0 billion of fresh capital into green and transition assets by 2030. As a government-linked fund management company, it is essential for us to embed ESG considerations into our investment decisions to augment our efforts in identifying opportunities for value creation and managing ESG risks," PNB chief investment officer, private & strategic investment Rick Ramli said.
"We are committed in ensuring a progressive transition towards a greener and sustainable future for long term resilience, amidst a changing global investment landscape. The refurbishment of the property is one important part of our efforts towards investing into green and transition assets," he added.
Rick said PNB has decided to donate selected materials removed during the demolition phase of the property, such as the steel and internal finishes, to a local charity organisation in London which operates unique facilities that provide innovative outdoor activities and learning opportunities for children, including the disabled community.
The donated materials from One Exchange Square will be used to facilitate the construction of a new nursery classroom at an existing primary school.
"The OCBC group is the existing lender supporting PNB in the acquisition of this property and we are glad to continue to support PNB's proactive effort to refurbish and upgrade the property to meet the highest green certification standard post completion," OCBC Bank (Malaysia) Bhd managing director, senior banker and head of investment banking Tan Ai Chin said.
She added that in addition to the syariah-compliant structure, which complements the green element of the facility, PNB's commendable efforts in doing good to support the local community as part of the project development truly demonstrate its strong commitment to the best ESG practices.
"This collaboration with PNB exemplifies OCBC Malaysia's relentless effort in further advancing the adoption of sustainable and responsible best practices amongst our business partners to create positive social, environmental and economic impact on communities while also ensuring a more sustainable future," Tan said.