DIALOG partners with OCBC Bank for Green Project Financing facility, included in FTSE4Good Bursa Malaysia Index
DIALOG Group Berhad (DIALOG), through Dialog Diyou PCR Sdn Bhd (DDPCR), has embarked on DIALOG’s inaugural sustainable financing venture via a Green Project Financing Facility (Green Financing).
OCBC Bank (Malaysia) Berhad (OCBC Bank) is the Structuring Adviser and Lender for the Green Financing, which was structured in compliance with the Loan Market Association’s Green Loan Principles (GLP).
DDPCR is a joint venture between DIALOG and Diyou Fibre (M) Sdn Bhd (DFMSB), while DFMSB is an established recycling and manufacturing company based in Nilai, Negeri Sembilan, Malaysia with over 30 years of experience in the industry.
Proceeds from the Green Financing will be utilised to part-finance the development of a food grade recycled polyethylene terephthalate (PET) pellets production facility. The raw materials for the facility will be sourced entirely from recycled plastics, rendering the project eligible under the pollution prevention and control and circular economy adapted products, production technologies and processes categories under the GLP. The project is also aligned with the UN Sustainable Development Goals #11 (Sustainable Cities and Communities) and #12 (Responsible Consumption and Production).
The successful close of the Green Financing, which coincides with the inclusion of DIALOG into Bursa Malaysia Berhad’s (Bursa Malaysia) FTSE4Good Bursa Malaysia (F4GBM) Index, is reflective of DIALOG’s strong commitment towards Environmental, Social and Governance (ESG) best practices.
Mr Chan Yew Kai, Executive Deputy Chairman of DIALOG Group Berhad, said: “The food grade recycled PET project will strengthen DIALOG’s investment into sustainable and renewables business and is a continuation of DIALOG’s initiatives to achieve business sustainability and fulfil its ESG agenda through commercially viable ventures. We are delighted to have partnered OCBC Bank as one of our key relationship banks to emplace this inaugural green project financing for DIALOG’s first recycling project.”
Ms Tan Ai Chin, Managing Director, Senior Banker and Head of Investment Banking, OCBC Bank, said: “OCBC Bank’s commitment to mainstream the adoption of ESG-driven aspirations among our client base continues with the successful closure of this landmark green project financing. Being one of the key relationship banks to DIALOG, we are pleased to be an integral part of DIALOG’s sustainability journey, and its inclusion as a F4GBM constituent is testament to DIALOG’s progress in incorporating ESG awareness as a cornerstone of its business model.
“OCBC Bank has been a prime mover of this targeted initiative, having entered into a Memorandum of Understanding with Bursa Malaysia in November 2021 to establish #financing4ESG as part of our continued contribution to further the sustainability agenda among Malaysian corporates and government linked companies. We view the implementation of sustainable finance as an overwhelmingly positive sign that the corporate sector is aligned to our government’s commitment towards achieving carbon neutrality by 2050.”