OCBC Bank (Malaysia) Berhad (“OCBC Malaysia”) has successfully pioneered the inaugural Islamic Sustainable Financing Facility for Permodalan Nasional Berhad (“PNB”) with a GBP210.0 million Islamic Green Financing Facility (“Green Facility”) for PNB Jersey Ltd, a wholly-owned subsidiary of PNB.

OCBC Malaysia is the Sole Lead Arranger and Sustainability Structuring Adviser for the Green Facility to finance the refurbishment of PNB’s investment property located at One Exchange Square, 175 Bishopsgate, London (“Property”).

The Property is an office tower which has been designed to attain the “Excellent” rating under the Building Research Establishment Environmental Assessment Method (“BREEAM”) with a targeted NABERS UK 5-Star Rating post-completion, signifying PNB’s environmental, social and governance (“ESG”) commitment towards investing into green and transition assets. Upon completion of the refurbishment in 2026, the Property is expected to achieve net-zero carbon emissions in its operations through a combination of energy efficiency, electrification and on-site energy generation.

Rick Ramli, Chief Investment Officer, Private & Strategic Investments of Permodalan Nasional Berhad, said, “PNB has established 10 ESG commitments in our Sustainability Framework launched in 2022, which include investing up to RM10.0 billion of fresh capital into green and transition assets by 2030. As a government-linked fund management company, it is essential for us to embed ESG considerations into our investment decisions to augment our efforts in identifying opportunities for value creation and managing ESG risks.

“We are committed in ensuring a progressive transition towards a greener and sustainable future for long term resilience, amidst a changing global investment landscape. The refurbishment of the Property is one important part of our efforts towards investing into green and transition assets.

In ensuring the inclusion of social element as part of our ESG best practices, we have also decided to donate selected materials removed during the demolition phase of the Property such as the steel and internal finishes, to a local charity organisation in London which operates unique facilities that provide innovative outdoor activities and learning opportunities for children, including the disabled community. The donated materials from One Exchange Square will be used to facilitate the construction of a new nursery classroom at an existing primary school. We are honoured to be able to play a part in supporting the local community.

Our partnership with OCBC Malaysia for this maiden Islamic sustainable financing demonstrates our shared value to create a more environmentally responsible, socially inclusive, and low-carbon future not only on the domestic front but also globally,” he said.

Ms Tan Ai Chin, Managing Director, Senior Banker and Head of Investment Banking, OCBC Bank (Malaysia) Berhad said, “We are deeply honoured to be PNB’s financial partner in acting as Sole Lead Arranger and Sustainability Adviser for its maiden Islamic Sustainable Financing. The OCBC Group is the existing lender supporting PNB in the acquisition of this Property and we are glad to continue to support PNB’s proactive effort to refurbish and upgrade the Property to meet the highest green certification standard post completion.

“In addition to the Shariah-compliant structure, which complements the green element of the facility, PNB’s commendable efforts in doing good to support the local community as part of the project development truly demonstrate its strong commitment to the best ESG practices. This collaboration with PNB exemplifies OCBC Malaysia’s relentless effort in further advancing the adoption of sustainable and responsible best practices amongst our business partners to create positive social, environmental and economic impact on communities while also ensuring a more sustainable future,” she said.

Ms Tan Ai Chin, Managing Director, Senior Banker and Head of Investment Banking, OCBC Bank (Malaysia) Berhad

The Green Facility is compliant with the “Green Loan Principles” published by the International Capital Market Association (“ICMA”), Asia Pacific Loan Market Association (“APLMA”) and the Loan Syndications and Trading Association (“LSTA”) and is also in accordance with OCBC Group’s Sustainable Finance Taxonomy, which provides eligibility criteria for green, social and transition business activities to support the OCBC Group’s clients through sustainable finance solutions.