KUALA LUMPUR – RHB Banking Group (RHB or the Group) has committed RM5 billion in support of green financing by 2025, through its core business activities of lending, capital markets advisory and fundraising, and investment, in line with its Sustainability Framework.
The RHB Sustainability Framework sets forth the Group’s approach towards embedding sustainable practices into the Group’s business and operations, which is part of its Sustainability vision of Building a Sustainable Future, premised on three key Pillars of Sustainable and Responsible Banking, Embedding Good Practices and Enriching and Empowering Communities.
As at 30 September 2020, the Group has grown its green financing portfolio to RM3.0 billion, up
6.3% from 31 December 2019, in support of green projects which include renewable energy, green
buildings, sustainable water and wastewater management.
“We are stepping up our efforts to support the country’s aspiration to transition to a low-carbon and climate resilient economy. Promoting the growth of the green economy involves channelling capital towards supporting sectors and economic activities that can make the biggest difference in the fight against climate change.”
“This also requires us to nurture businesses, and stimulate innovation and development of environmentally-friendly products and services.”
“Through our RM5 billion commitment for green financing by 2025 in the form of lending, capital markets advisory and fundraising, and investment activities, we hope to play a bigger role in supporting the growth of the green economy by encouraging our customers to adopt more sustainable business practices,” said Dato’ Khairussaleh Ramli, Group Managing Director of RHB Banking Group.”
Towards this, RHB Investment Bank Berhad (“RHBIB”), the investment banking arm of RHB Banking Group was recently awarded the Green Deal of the Year at the Asian Banking Finance Corporate & Investment Banking Awards 2020 for arranging a RM200 million ASEAN Green SRI Sukuk programme (the Programme). In addition, the maiden issuance under the Programme was awarded the Best ASEAN Green SRI Sukuk at The Asset Triple A Islamic Finance Awards 2020.
The Programme adopts the Shariah principles of Wakalah Bi Al-Istithmar and Murabahah (via Tawarruq
arrangement), and proceeds from the issuance are used to fund Sustainable and Responsible Investment (SRI) projects, among other Shariah-compliant purposes. RHBIB was the sole principal adviser, sole lead arranger and sole lead manager for the Programme.
“On the other hand, we are also mindful of the stage of the development of the country and the need to be practical in our adoption of ESG considerations. Our role within the community goes beyond simply advocating commitment to green financing, but also ensuring socio economic well-being of our communities,” added Dato’ Khairussaleh.
RHB Banking Group supports the United Nations Sustainable Development Goals (SDG’s) and believes that its Sustainability Framework will contribute towards the achievement of these goals as well as the Group’s sustainability vision and aspirations. Six (6) priority SDGs have been identified including SDG13: Climate Action, representing SDGs that RHB actively aims to support and reflect the Group’s position, beliefs and aspirations.
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