Retail customers of OCBC Bank (Malaysia) Berhad (OCBC Bank) can now invest in the Bank’s maiden principalprotected interest rate-linked floating rate negotiable instrument of deposits (FRNID) that incorporates environmental, social and governance (ESG) elements.

The Callable Interest Cumulation Floating Rate Negotiable Instruments of Deposit (CIC FRNID) is an ESG investment that allows the Bank’s customers to earn a potentially higher return than a fixed deposit, by taking a view on KLIBOR rates. The sustainability goals are fulfilled by ensuring the funds collected from the structured investment are invested into assets that fulfil the Bank’s internal ESG Framework.

The initiative rides on the Bank’s strategy and commitment to significantly increase its offerings in green financing and investment options by 2025.

WARNING: THIS PRODUCT IS PRINCIPAL GUARANTEED BY THE ISSUING BANK UPON MATURITY ONLY. IF THE PRODUCT IS REDEEMED OR SOLD PRIOR TO MATURITY, THE CUSTOMER MAY LOSE PART OF THE INITIAL DEPOSIT AMOUNT. THE RETURNS ON THIS PRODUCT ARE UNCERTAIN AND THE CUSTOMER RISKS EARNING NO RETURNS AT ALL. THE CUSTOMER IS REMINDED THAT THIS PRODUCT IS NOT PROTECTED BY PERBADANAN INSURANS DEPOSIT MALAYSIA.

According to OCBC Bank Managing Director & Head of Consumer Financial Services Ms Anne Leh, the Bank’s heightened emphasis on sustainability in recent times has caused it to consider sustainability from more angles than before, the latest being through a FRNID.

OCBC Bank Managing Director & Head of Consumer Financial Services Ms Anne Leh (left) and OCBC Bank Head of Global Treasury Mr Stantley Tan introducing the Bank’s maiden ESG-themed FRNID at Menara OCBC, Kuala Lumpur

“We are creating more products that take ESG factors into consideration, spurred on by the almost RM5 billion in sustainable assets under management (AUM) we achieved at the end of last year.

“Green financing and investments offer the opportunity to do well by doing good. We believe there is a lot more that banks can do to drive the sustainability agenda and meet the growing needs and share of mind of customers for low-risk investment products like this, not to mention tapping into the vast array of opportunities out there today,” she said.

She added that a significant number of customers have started to actively pursue ESG-based investments and the Bank is committed to ensuring the needs of those with conservative risk appetites are met through its principal-protected FRNIDs.

The CIC FRNID is suitable for investors looking for a low-risk investment that is 100% principal-protected when held to maturity while seeking potentially higher returns compared to fixed deposits.

For more information, potential investors can call the Bank at 0383175000.

WARNING: THIS PRODUCT IS PRINCIPAL GUARANTEED BY THE ISSUING BANK UPON MATURITY ONLY. IF THE PRODUCT IS REDEEMED OR SOLD PRIOR TO MATURITY, THE CUSTOMER MAY LOSE PART OF THE INITIAL DEPOSIT AMOUNT. THE RETURNS ON THIS PRODUCT ARE UNCERTAIN AND THE CUSTOMER RISKS EARNING NO RETURNS AT ALL. THE CUSTOMER IS REMINDED THAT THIS PRODUCT IS NOT PROTECTED BY PERBADANAN INSURANS DEPOSIT MALAYSIA.