- Region: Asia
- Untied Loans
March 28, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today an untied loan agreement for offering a credit line amounting up to 80 million U.S. dollars (of which JBIC's portion is 48 million U.S. dollars) with RHB Bank Berhad (RHB), one of the leading commercial banks in Malaysia. The loan is cofinanced with Sumitomo Mitsui Banking Corporation (SMBC; lead arranger), with JBIC providing partial guarantee for the confinanced portion.
- This credit line under GREEN operations*1 is intended to provide funding through RHB for environment businesses related to renewable energy such as biomass power generation and waste to energy in Malaysia. Furthermore, JBIC signed the Memorandum of Understanding (MOU)*2 with RHB on a collaborative relationship for strategic partnership on March 2013, and this credit line is realized by collaborative efforts of both banks based on the MOU.
- As the Government of Malaysia (GOM) ratified the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, it is actively undertaking environmental measures, including a policy of targeting 40% reduction of GHG emission, compared to the year 2005, on a GDP basis by the year 2020. Further, the business opportunities in the environmental protection field are growing in Malaysia as the GOM introducing the policy to initiate incentive framework for renewable energy business such as an electricity purchasing scheme based on a feed-in tariff mechanism. Under these circumstances, this credit line is expected to contribute not only to reducing GHG emission in Malaysia, but also to expanding the business opportunities of Japanese companies in the environmental protection field in Malaysia.
- JBIC will continue to support global environment preservation efforts, in cooperation with such overseas local financial institutions, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.