In a move towards sustainable energy initiatives, Bank Islam Malaysia Berhad recently solidified its commitment to Malaysia’s energy transition efforts by signing a financing agreement with Sand Town Solar Sdn Bhd (STS) worth RM91.5 million.
The signing ceremony, held in Kuala Lumpur recently, was attended by Malaysia’s Deputy Prime Minister and Energy Transition and Water Transformation Minister, Datuk Seri Fadillah Yusof, underscoring the significance of the occasion.
The agreement marks Bank Islam’s pioneering role as the first Islamic banking institution to provide financing facilities for private companies under the New Enhanced Dispatch Agreement (Neda) mechanism. Ahmad Haliman Abd Halim, Bank Islam’s group institutional banking director of commercial client solutions, and Datuk Muhammad Guntor Mansor Tobeng, GKSB group managing director, represented the respective parties during the signing ceremony.
Deputy Prime Minister Datuk Seri Fadillah Yusof expressed gratitude to Bank Islam for its support of green energy initiatives, highlighting the critical role of industry players in driving sustainable development. He emphasized the imperative for Malaysia to transition from fossil fuel reliance to renewable energy sources to ensure economic, environmental, and social sustainability.
STS, a subsidiary of Kumpulan Gading Kencana Sdn Bhd (GKSB), specializes in renewable energy services, particularly solar photovoltaic (PV) systems. The company’s flagship project, a 29.99 MW solar PV farm in Bidor, Perak, supplies electricity to Tenaga Nasional Berhad under Neda. The financing from Bank Islam will enable STS to cover essential capital expenses, including land refinancing and development costs for the solar PV farm.
Bank Islam’s group chief executive officer, Datuk Mohd Muazzam Mohamed, highlighted the institution’s commitment to environmental, social, and governance (ESG) principles and its role in promoting renewable energy investment. He emphasized the pivotal role of such financing in Malaysia’s transition to renewable energy sources, fostering economic resilience and a sustainable future.
GKSB group managing director Datuk Muhammad Guntor Mansor Tobeng lauded the collaboration with Bank Islam, emphasizing their shared vision of supporting Malaysia’s clean energy sector. He underscored the significance of Bank Islam’s support in advancing the nation’s renewable energy goals and providing clean energy access to consumers nationwide.
In conclusion, the financing agreement between Bank Islam and STS represents a significant step in Malaysia’s journey toward sustainable energy development. With strong support from financial institutions like Bank Islam, Malaysia is poised to accelerate its transition to renewable energy sources, paving the way for a greener, more prosperous future.
