• Chief Exec Abdul Farid Alias says bank is transitioning to ESG compliance
• Lender to scale up existing green, social and sustainability bonds
Malaysia’s biggest lender announced on Monday that it will be bringing in a 50 billion ringgit ($11.88 billion) sustainable product framework this year.
The Malayan Banking Bhd – or Maybank – said the framework will cover direct lending or investment, and services related to arranging, syndicating, fundraising or underwriting as well as advisory.
The bank, the south-east Asian nation’s largest lender by assets, said it will scale up existing green, social and sustainability bonds or sukuk.
It will also boost financing for green projects, as well as Environmental, Social, and Governance (ESG) thematic funds, loans and sustainability-linked trade products among others.
Maybank said that, up until March, it had booked 8 billion ringgit in loans to green financing and renewable alternative energy activities.
Group President and Chief Executive Abdul Farid Alias told a briefing the bank is working with clients from various sectors to transition towards ESG compliance.
“We have committed ourselves to no longer finance new coal (projects) going forward, and we will not get involved in deforestation as well,” Abdul Farid said, referring to activities that resulted in new clearance of forests in Malaysia whether for plantation, property development or construction.