RHB, JBIC ink US$100m 'green' deal

KUALA LUMPUR: RHB Bank Bhd has received a US$100 million (RM309 million) funding from Japan Bank of International Cooperation (JBIC) to be distributed as loans to local and Southeast Asian companies to carry out energy saving and environment friendly projects.

JBIC is one of the world's largest government-owned banks.

RHB Bank managing director Johari Abdul Muid said the cooperation with JBIC will stir interest among big companies and small- and medium enterprises, both in the country and the region, to carry out the projects.

Under the agreement signed by both parties, they will share and exchange knowledge and information with a view to identify and fund businesses as well as projects that can have a positive impact on the preservation of the global environment, especially in Malaysia and Southeast Asia.

RHB Bank, Malaysia's fifth largest bank, will be responsible for distributing loans to eligible companies.

"At this time, we have identified local companies that are eligible for the loans," Johari said after the signing of the MoU yesterday.

Meanwhile, senior managing director and chief operating officer of JBIC, Fumio Hoshi, said the loan is in line with the Japanese government's policy to give out loans to support Malaysia's as well as Southeast Asia's financial institutions.

"The Japanese government is serious in its role as a catalyst towards the preservation of the environment in Southeast Asia, as well as enhance bilateral and trade relations," said Hoshi.

The MoU is the fifth strategic financial collaboration with JBIC and is another significant milestone in the long-term relationship and strong bilateral cooperation between RHB and JBIC.