KOTA KINABALU: Sabah Development Bank will only serve as the lead lender for "meaningful" projects, says state Finance Minister, Datuk Seri Masidi Manjun.
He said this includes loans linked to major investments and development projects, particularly those related to water, power and infrastructure.
"Some of the projects identified include those involving power generation and storage systems, non-revenue water, jetty expansion, critical roads and industrial-based projects such as those by the E-Steel Group and Kibing Group," he said in a statement.
Masidi said the bank had the state government's full support.
The Sabah government is committed to ensuring all the bank's bond repayment obligations are fulfilled, he said.
Masidi also said the state is converting RM660 million in deposits into redeemable preference shares to increase the bank's capital.
He said the bank is on track to achieve its annual recovery target of RM1 billion by the end of the year.