RHB Targets RM1.5 Bil in Green Financing Scheme for SMEs by 2024
The five financing schemes included are the SME Green Renewable Energy Financing, SME Green Construction Financing, SME Green Commercial Property Financing, SME Green Working Capital Financing, and SME Green CAPEX Financing.
RHB Banking Group has introduced the RHB Green Financing Scheme, aimed at promoting sustainable practices among small and medium enterprises (SMEs) in Malaysia. Through the scheme, the group aims to provide a total of MYR1.5bn ($375m) in sustainable financing to SMEs by 2024.
The RHB Green Financing Scheme is part of the group’s existing Sustainable Financing Programme, which includes five green financing schemes. The financing facilities provide access to working capital of up to MYR10m with a repayment period of up to 10 years at preferential rates.
The five financing schemes included are the SME Green Renewable Energy Financing, SME Green Construction Financing, SME Green Commercial Property Financing, SME Green Working Capital Financing, and SME Green CAPEX Financing, says Jeffrey Ng, Managing Director of Group Community Banking, RHB Banking Group.
The scheme is designed to help SMEs transition to low-carbon operations in line with global standards and best practices, including the manufacturing of biodegradable and eco-friendly products from recycled materials, reducing waste, and facilitating renewable energy. The RHB Green Financing Scheme enables SMEs to access the Low Carbon Transition Facility initiative by Bank Negara Malaysia.
RHB Banking Group aims to intensify its efforts to support and advance SMEs to sustainable practices in 2023 through knowledge sharing, advisory, as well as innovative products and services. The group is committed to its 5-year Sustainability Strategy and Roadmap and has achieved over MYR14.5bn ($3.6bn) in sustainable financial services as of December 2022, exceeding its target by 66%.