Permodalan Nasional Berhad (“PNB”) has successfully launched its inaugural Sustainability-Linked Islamic Financing (“SLF”) facilities with OCBC Bank (Malaysia) Berhad (“OCBC Malaysia”) as the Sole Sustainability Structuring Adviser.

OCBC Malaysia has collaborated closely with PNB to align its existing facilities with the SLF structure (“SLF Facilities”) under PNB’s sustainability framework. This landmark transaction represents PNB’s maiden SLF Facilities, reinforcing its strong commitment to sustainability through two dual-currency financing facilities denominated in MYR and USD respectively.

Since launching its Sustainability Framework and 10 ESG Commitments three years ago, PNB has made sustainability a key part of its growth strategy. The SLF will play an important role in this journey, not just for cost optimisation, but also as a driver of ESG progress, with its financing costs linked to performance against selected key performance indicators (“KPIs”). Specifically, PNB has set two critical ESG targets by 2030 i.e. investing RM10 billion in Green and Transition Assets and reducing investment emission intensity by 30%. These commitments set a strong foundation for future financings under PNB to be structured as an SLF.

Puan Hanizan Hood, Group Chief Investment Officer of Permodalan Nasional Berhad said, “We are pleased to launch our first SLF with OCBC Malaysia, a milestone that strengthens our commitment to ESG and marks an important step forward in our sustainability journey. As a government-linked fund management company, this initiative demonstrates our determination to not only integrate sustainability considerations into our investment decision-making, but to ensure it becomes a driver of growth, resilience, and long-term value creation. Our collaboration with OCBC Malaysia embodies our shared values and strong commitment to environmental stewardship while making a meaningful contribution to global sustainability goals.”

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 to support PNB’s maiden SLF Facilities, affirming our long-standing partnership with PNB in its decarbonisation journey. This landmark transaction features a ‘double-green’ structure, which seamlessly integrates Islamic and Sustainable Finance. It stands as a strong testament to our continuous commitment to deliver impactful, innovative financing solutions that drive long-term ESG progress while championing the growth of Islamic Finance. The SLF Facilities have embedded key sustainability financing parameters which will financially incentivise PNB to continue with its ongoing efforts in advancing its ESG commitments. 

This is our second sustainable financing solution for PNB as OCBC Malaysia was also the Sole Lead Arranger and Sustainability Structuring Adviser for a maiden Green Islamic Facility of GBP210.0 million to finance the refurbishment of PNB’s investment property in London which achieved financial close in mid-2024. 

Our collaboration with PNB exemplifies both organisations’ pledge to keep sustainability commitment and responsible best practices at the heart of our business.”