KUALA LUMPUR (Jan 9): Gamuda Bhd has partnered with OCBC Bank (Malaysia) Bhd and OCBC Al-Amin Bank Bhd (collectively OCBC Malaysia) for its inaugural shariah-compliant sustainability-linked financing facility with an embedded sustainable derivative solution.
OCBC Malaysia is the sole sustainability structuring adviser for Gamuda’s maiden environmental, social and governance (ESG)-linked holistic financing solution totalling up to RM550 million.
In a joint statement on Monday (Jan 9), Gamuda said the signing of this holistic sustainable financing with OCBC Malaysia is a major milestone for the group, aligned with its Gamuda Green Plan 2025 (GGP 2025) road map.
“As a regional engineering and infrastructure company, Gamuda is well positioned to make a meaningful impact with its ESG initiatives, mainly via the initial concept planning and design, where a huge portion of a building or project’s environmental impact throughout its life cycle can be effectively mitigated,” it said.
According to Gamuda, the group is looking forward to this partnership, which further reinforces the group’s sustainability agenda, particularly its commitment to reducing carbon emissions.
“Decarbonising the construction industry is challenging, but it is urgent, and a coordinated effort between industry players and financial institutions is more urgent than ever before," it said.
Under the GGP 2025, Gamuda is committed to a structured, accountable approach to decarbonisation, with clear internal targets and parameters in place. In addition, the group is committed to the Science Based Targets initiative, and is an official supporter of the Task Force on Climate-Related Financial Disclosures that focuses efforts on net-zero emissions by 2050.
“This ESG-linked financing solution would create yet another new benchmark in Malaysia, especially given that it embeds the Islamic principles of value-based intermediation financing with an added feature of a derivative solution to effectively manage financial risks,” OCBC managing director, senior banker and head of investment banking Tan Ai Chin commented.
“This holistic sustainable financing solution would serve to appropriately address Gamuda’s funding requirements to propel its ESG agenda further.
“As a responsible financial partner, OCBC Malaysia is pleased to be able to facilitate and support the increasingly widespread acceptance of sustainable finance among Malaysian public-listed companies to advance their decarbonisation journey,” Tan added.