OCBC BANK, MFP SOLAR CONCLUDE RM100 MLN GREEN TERM LOAN FACILITY AGREEMENT

KUALA LUMPUR, May 10 -- OCBC Bank (Malaysia) Bhd and MFP Solar Sdn Bhd have concluded a RM100 million green term loan facility agreement to finance the development of multiple rooftop solar photovoltaic (PV) plants under a single master facility structure.

In a statement today, OCBC Bank Malaysia said the facility has also been assessed with the green loan assessment by the Malaysian Rating Corp Bhd (MARC) and assigned with a “Gold” assessment.

Managing director, senior banker client coverage and head of investment banking Tan Ai Chin said the green loan for rooftop solar plants set a new milestone in the development of the domestic market for sustainable financing.

“As a bank, which is fully committed to supporting sustainable development, we actively support businesses which are at the forefront of promoting technologies engineered towards mitigating climate change-associated risks,” she said.

She said the bank has also taken a step further towards validating the green loan structure by procuring the assessment from MARC.

“I am glad that we have achieved the highest Gold standard, a testament to our robust structuring capability in sustainable financing,” she said.

Meanwhile, MARC group chief executive officer Datuk Jamaludin Nasir said the Gold assessment is the highest assessment on MARC’s scale for green financing instruments. 

“In assigning the Gold assessment, we considered the positive environmental impacts of rooftop solar projects that will be financed, the facility's alignment with the Green Loan Principles, including its use of external review on a green loan, as well as MFP Solar’s prospective sustainability performance.

“MARC considers the use of proceeds as impactful as the eligible projects will support national climate change mitigation goals, corporate adoption of clean energy and a sustainable energy supply system,” he said.

MFP Solar is a 55 per cent-owned subsidiary of Mega First Corporation Bhd with the remaining 45 per cent held by Pekat Teknologi Sdn Bhd.

A solar pure-play and registered Solar PV Investor with the Sustainable Energy Development Authority, MFP Solar’s business model entails tendering and securing rooftop solar PV projects under its business model of Solar Power Purchase Agreement.

-- BERNAMA