Malaysia’s leading Islamic Bank, Bank Islam Malaysia Berhad (Bank Islam or the Bank), today signed a financing agreement worth RM91.5 million with Sand Town Solar Sdn Bhd (STS).
STS, a subsidiary of Kumpulan Gading Kencana Sdn Bhd (GKSB), is a renewable energy service company specialising in designing and installing solar photovoltaic systems, and establishing and maintaining electrical and energy management systems.
STS, a special purpose vehicle for a 29.99 MW solar photovoltaic (PV) farm project in Bidor, Perak, supplies electricity generated to Tenaga Nasional Berhad under The New Enhanced Dispatch Arrangement (NEDA) mechanism.
STS will utilise the financing from Bank Islam to cover necessary capital expenses, including refinancing the land and the development costs for the 29.99 MW solar PV farm.
Signing on behalf of Bank Islam and GKSB Group were Ahmad Haliman Abd Halim, Director, Commercial Client Solutions, Group Institutional Banking, Bank Islam and GKSB by its Group Managing Director, Dato’ (Dr) Ir. Muhamad Guntor Mansor Tobeng.
YAB Dato’ Sri Haji Fadillah Yusof Haji Yusof, Deputy Prime Minister and the Minister of Energy Transition & Water Transformation; Dato’ Mohd Muazzam Mohamed, Group Chief Executive Officer Bank Islam, and Datin Hasnah Awang, Executive Director of STS, were present to witness the signing of the agreement.
With the signing of the agreement, Bank Islam became the first Islamic banking institution to provide financing facilities for private companies under NEDA.
Bank Islam Group Chief Executive Officer Dato’ Mohd Muazzam Mohamed said, “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 (RE) sector. This financing will aid in Malaysia’s energy transition, from power generation based on fossil fuel and coal to RE sources like solar power, thus promoting the adoption of eco-friendly solutions while bolstering the economy for a more prosperous and resilient future,” he said.
He added, “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.”
Meanwhile, the Group Managing Director Kumpulan Gading Kencana Sdn Bhd, Dato’ (Dr) Ir. Muhamad Guntor Mansor Tobeng said, “We are very pleased that Bank Islam shares our vision and commitment to supporting the growth of the RE sector through the provision of green financing. The effort reflects good relations between GKSB and Bank Islam since 2019 and the Islamic financial institution’s solid support for the country’s clean energy sector. Through the funding, we can succeed in our mission to provide clean energy to every consumer in this country,” he said.