Supporting Malaysia’s Energy Transition Efforts
03.12.2024 By Tank Terminals - NEWS

March 12, 2024 [The Star]- BANK Islam Malaysia Berhad recently signed a financing agreement with Sand Town Solar Sdn Bhd (STS) worth RM91.5mil, reaffirming the bank’s commitment to supporting the nation’s energy transition efforts.

 

The signing ceremony was held at the Grand Hyatt Kuala Lumpur on February 28. Malaysia’s Deputy Prime Minister and Energy Transition and Water Transformation Minister, Datuk Seri Fadillah Yusof, witnessed the signing ceremony with Bank Islam group chief executive officer Datuk Mohd Muazzam Mohamed and STS executive director Datin Hasnah Awang.

Signing on behalf of Bank Islam and GKSB group were Bank Islam’s group institutional banking director of commercial client solutions Ahmad Haliman Abd Halim and GKSB group managing director Datuk Muhammad Guntor Mansor Tobeng.

With this agreement, Bank Islam became the first Islamic banking institution to provide financing facilities for private companies under the New Enhanced Dispatch Agreement (Neda) mechanism.

“I would like to thank Bank Islam for being one of the few financial institutions that supports green energy initiatives in our country,” says Deputy Prime Minister Datuk Seri Fadillah Yusof.

“Today’s programme is significant because, without the support of industry players, we would not be able to drive more green initiatives.

“Currently, if you look at our country, primarily in the peninsula, we still rely heavily on electrical energy generated from fossil fuels, such as coal, which release off many carbon emissions.

“For Malaysia to be competitive, we have no choice but to shift to renewable energy sources to ensure sustainability, not just from an environmental point of view, but also in economic and social contexts.”

STS, a subsidiary of Kumpulan Gading Kencana Sdn Bhd (GKSB), is a renewable energy service company specialising in designing and installing solar photovoltaic (PV) systems, as well as establishing and maintaining electrical and energy management systems.

The company – a special-purpose vehicle for a 29.99 MW solar PV farm project in Bidor, Perak – supplies electricity generated to Tenaga Nasional Berhad under Neda.

STS will utilise the financing from Bank Islam to cover necessary capital expenses, including refinancing the land and the development costs for the solar PV farm.

“Bank Islam is honoured to be involved in a project that aligns with environmental, social and governance (ESG) principles and promotes investment in the renewable energy sector,” says Bank Islam group chief executive officer Datuk Mohd Muazzam Mohamed.

“This financing will aid in Malaysia’s energy transition from power generation based on fossil fuel and coal to renewable sources such as solar power, thus promoting the adoption of eco-friendly solutions while bolstering the economy for a more prosperous and resilient future.

“Bank Islam is always open to more collaborations with industry players to achieve the country’s net-zero carbon target by 2050 set by the government to attain a sustainable future for all.”

GKSB group managing director Datuk Muhammad Guntor Mansor Tobeng added that this agreement signifies the efforts to provide clean energy to Malaysian consumers.

“We are very pleased that Bank Islam shares our vision and commitment to supporting the growth of the renewable energy sector through the provision of green financing,” he says.

“The efforts reflect the good relations between GKSB and Bank Islam since 2019. The Islamic institution’s solid support for the country’s clean energy sector. Through the funding, we can succeed in providing clean energy to every consumer in this country.”

 

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