Saudi Residential Property Developer Dar Al Arkan Returns to International Sukuk Market with US$400m Sukuk Offering in July
Jeddah – The Dar Al Arkan Real Estate Development Company, the leading and largest publicly listed Saudi Arabian residential property developer, successfully closed its latest Sukuk offering – a 3-Year US$400 million (SR1,503.15 million) Regulation S senior unsecured hybrid Tawarruq/Ijara Sukuk on 18 July 2022.
The Sukuk was issued through Cayman Island-incorporated Trustee, Dar Al-Arkan Sukuk Company Limited, on behalf of its obligor, Dar Al-Arkan Real Estate Development Company, under its US$2.5 billion Trust Certificate Issuance Programme established on 7 June 2022 and arranged by Alkhair Capital (Dubai) Limited, Standard Chartered Bank, Deutsche Bank and Emirates NBD Capital.
Dar Al Arkan had mandated the above banks together with Bahrain-based GFH Financial Group as Joint Lead Managers, to arrange a series of investor meetings and calls and to advise on the pricing of the transaction.
The 3-year Sukuk transaction was launched on 30th June 2022 and, according to GFH Financial Group, was met with strong demand from regional and international investors. The transaction, according to market sources, was priced on 1 July 2022 at a profit rate of 7.75% maturing in February 2026, offering a yield of 8%.
Dar Al Arkan, rated B1 by Moody’s Investor Services (with a Stable Outlook), is a regular issuer of Sukuk and user of Islamic financing facilities. This latest issuance marks the 12th international Sukuk offering for the Company to date, ever since its debut US$400 million Sukuk in March 2007.
Dar Al Arkan, which is listed on Tadawul, is the largest Saudi developer by market value and has a portfolio of assets valued at more than US$8.5 billion. Dar Al-Arkan’s activities include residential, mixed use and commercial developments in Riyadh, Jeddah, Mecca and Medina and other cities across in Saudi Arabia, as well as Dubai. The company has expanded to new markets, such as Egypt and Bosnia and Herzegovina.
According to Salem Patel, Chief Investment Officer, Debt and Capital Markets at GFH, the transaction “demonstrates GFH’s strong capital market capabilities and our ability to lead on important transactions to support our clients’ aspirations and growth despite challenging market conditions. We will continue to strengthen and expand our capital markets and advisory services to further support our clients.”
GFH has acted as an arranger or advisor on nearly USD 1.5bn dollars of Sukuk issuances since the start of 2022, including Infracorp’s recent perpetual Sukuk, the first green Sukuk issuance by a Bahrain corporate.
Proceeds from the issuance will be used to further support Dar Al Arkan’s development goals and pipeline of projects. The proceeds of the sale of the Certificates (the Sukuk Proceeds) will be invested in a single portfolio of investments comprising an Ijara Agreement and a Murabaha Agreement entered into between the Investment Manager and the relevant Restricted Subsidiaries of Dar Al-Arkan in accordance with the Investment Plan.
The Investment Management Agreement provides that a minimum amount corresponding to 51 per cent. of the face amount of the Certificates outstanding must be invested in Ijara Agreements at all times, except during the period necessary for the replacement of any Ijara Agreement which is terminated as a result of the occurrence of a Total Loss (as defined in the relevant Ijara Agreement).
The Investment Plan means the requirement for the Investment Manager: (i) to invest the Sukuk Proceeds into a portfolio of Sukuk Contracts which generates returns at least equal to each relevant Periodic Distribution Amount for a period which is equal to or greater than the remaining duration of the Certificates which are outstanding at the time of the relevant investment; and (ii) to ensure satisfaction of the Underlying Value Conditions.
Securities Commission Malaysia Launches SRI-linked Sukuk Framework to Facilitate Fundraising by Companies in Addressing Sustainability Concerns such as Climate Change or Social Agenda
Kuala Lumpur – The Securities Commission Malaysia (SC) launched the Sustainable and Responsible Investment linked (SRI-linked) Sukuk Framework in June 2022 to facilitate fundraising by companies in addressing sustainability concerns such as climate change or social agenda, with features that relate to the issuer’s sustainability performance commitments.
With the accelerated shift towards developing a climate-resilient future, high-emitting industries are at a high risk of being phased out. The SRI-linked Sukuk will enable companies in these as well as other industries to transition into a low-carbon or net zero economy.
As at December 31, 2021, the global sustainable bonds outstanding exceeded US$1 trillion with sustainability-linked bonds making up US$118.8 billion.
The size of the Malaysian Islamic Capital Market (ICM) increased by 2.3% to RM2,308.54 billion (US$520 billion) at end 2021 from RM2,256.36 billion (US$510 billion) at end 2020, despite the difficult global market conditions.
The ICM continued to dominate accounting for 65.4% of the total size of the overall Malaysian capital market, which also showed its resilience by registering an overall year-on-year (YoY) growth of 3% to RM3.53 trillion (US$790 billion) in 2021 on the back of “a robust capital market regulatory infrastructure, diversified market ecosystem and market participants’ strong capitalisation levels.”
The new Framework is an extension of the initiatives under the SRI Roadmap that was introduced in 2019 to broaden SRI products offerings. More significantly, this initiative reflects the SC’s commitment to expand the reach of the Islamic Capital Market (ICM) to the broader stakeholders of the economy and build an enabling ICM ecosystem for the sustainability agenda.
According to the new SC Chairman Dato’ Seri Dr. Awang Adek Hussin, “the SRI-linked Sukuk Framework will encourage greater mobilisation of private sector and issuers’ financing towards sustainable development and meet the increasing global demand for sustainable financing. This is in line with the initiatives outlined in the Capital Market Masterplan 3 to reinforce Malaysia’s value proposition as the regional centre for Sharia’a-compliant SRI.”
Under the Framework, the proceeds raised can be utilised for general purpose, subject to the issuer committing to future improvements for sustainability outcomes within a predefined timeline, which will be monitored using key performance indicators (KPIs). The financial characteristic or structure of the SRI-linked sukuk may be varied based on the success or performance of the issuer in meeting its KPIs and sustainability goals.
The Framework also provides greater transparency for investors by requiring issuers to appoint an external reviewer before issuance and an independent verifier post-issuance to assess compliance with the framework and issuer’s sustainability performance which can be tracked by investors.
The SC recognises that there are significant opportunities for the market to attract a more diverse issuer and investor base and undertake a wide range of sustainable projects. Malaysia is currently one of the top hubs for sustainable and responsible investment (SRI) in the world especially in the Sharia’a complaint space, in which social and financial inclusion values and goals are firmly embedded, in addition to market and financial returns.
Measures to grow the domestic SRI ecosystem focuses on enhancing awareness and appreciation of sustainability and facilitating Green and SRI product offerings. As such, the SC recently released a consultation paper on the principles-based SRI taxonomy for the Malaysian capital market.
Tadawul Launches Maiden TASI Islamic Index in Response to Growing Demand from Investors for Sharia’a compliant investments
Riyadh – The Saudi Stock Exchange (Tadawul) launched its first Sharia’a Compliant Index, the TASI Islamic Index, in July 2022. The Index, according to Tadawul, comes in response to growing demand and interest from local and international investors for Sharia’a compliant investment tools.
The Index tracks the performance of Sharia’a compliant companies listed on Tadawul under the supervision of an independent Sharia’a Advisory Committee. It will act as a tool for investors and wider market participants to guide and inform decisions when looking into Sharia’a compliant investments, while also allowing asset managers to benchmark the performance of their Sharia’a compliant portfolios.
According to Mohammed Al Rumaih, CEO of Tadawul, “the launch of the TASI Islamic Index complements the Exchange’s ongoing product and indices development efforts to provide best-in-class services and diversified offerings to investors. The Index will facilitate the launch of new financial products in the market to satisfy the increasing demand for Shariah compliant investment tools.
“The introduction of such tools shall ultimately boost the Islamic investment sector in the Kingdom. It will also strengthen the Saudi Exchange’s position as the investors’ exchange of choice and an attractive investment destination in line with Vision 2030’s Financial Sector Development Programme.”
The Saudi Exchange will collaborate with the Sharia’a Advisory Committee, which consists of representatives from leading financial institutions, and will work towards maintaining the highest standards of governance, while ensuring Index constituents abide by the unified Sharia’a compliant principles based on clear and transparent criteria. They will also undertake the responsibility of overseeing and approving the list of Sharia’a compliant listed companies on a periodic basis.
The launch of the Index, says Tadawul, represents the Saudi Exchange’s ongoing efforts to deliver best-in-class services, diversified offerings, and investment opportunities, ultimately increasing the Saudi capital market’s attractiveness among local and international investors.
APIC Raises SAR6.1bn (US$1.62bn) Through Murabaha Financing Facilities Signed with a Consortium of Saudi Banks to Finance Petrochemical Plants in Jubail
Jeddah – Advanced Polyolefins Industry Company (APIC), a subsidiary of Advanced Petrochemical Company based in Jubail Industrial City, raised SAR6.1 billion (US$1.62 billion) through a number of Sharia’a compliant Islamic financing facilities with a consortium of nine Saudi financial institutions in July 2022.
In a disclosure to the Saudi Exchange (Tadawul), Advanced Petrochemical Company confirmed that the proceeds from the facilities will be used to finance the construction of a Propane Dehydrogenation (PDH) Plant, a Polypropylene (PP) Plant, and an Isopropanol (IPA) plant at Jubail Industrial City II in Saudi Arabia, with a nameplate capacity to produce 843,000 tons per annum of propylene, 800,000 tons per annum of polypropylene and 70,000 tons per annum of isopropanol.
The financing facilities total SAR6.1 billion, comprising i) a base facility of SAR4.7 billion (US$1.25 billion); ii) a standby facility of SAR438 million (US$116.57 million); iii) a bridge Murabaha facility of SAR600 million (US$159.68 billion); and iv) a VAT Murabaha facility of SAR356 million (US$94.74 million).
The participating banks included Alinma Bank, Al Rajhi Banking and Investment Corporation, Arab National Bank, Arab Petroleum Investments Corporation (Apicorp), Bank Albilad, Banque Saudi Fransi, Riyad Bank, The Saudi British Bank, and The Saudi National Bank.
The Base and Standby facilities are repayable in 22 unequal semi-annual instalments starting from 31 May 2025 until 30 November 2035 while the Bridge and VAT Murabaha facilities will be payable no later than 31 May 31 2026.
Advanced Petrochemical Company provided US$250 million in collateral and a pledge of the shareholders’ shares in APIC.
Malaysia’s Mortgage Securitiser Cagamas Berhad Continues Issuance Momentum with Aggregate RM250m (US$56.09m) of IMTNs and Social SRI Sukuk Issuances in June 2022
Kuala Lumpur – Cagamas Berhad, the National Mortgage Corporation of Malaysia, one of the most prolific issuers of Sukuk, continued its Sukuk issuance momentum with the successful pricing of its RM100 million (US$22.44 million) 3-year Islamic Medium-Term Notes (IMTNs) on 20 June 2022, and its Hybrid RM50 million (US$11.22 million) 1-year Conventional Medium Term Notes (CMTNs), RM50 million (US$11.22 million) 2-year CMTNs and RM150 million (US$33.65 million) 3-year ASEAN Social SRI Sukuk on 30 June 2022.
The proceeds from the IMTNs and CMTNs will be used to fund the purchase of house financing and housing loans from the financial system.
“The RM100 million transaction was successfully priced ahead of the widely expected further interest rate hike by the Federal Reserve (the Fed) in its efforts to contain inflation. The Fed later announced an increase of 75 basis points (bps) in interest rate, the largest increase since 1994. With the Company’s latest sukuk pricing, we are encouraged by the Company’s issuance performance thus far, which registers a total of RM7.3 billion worth of bonds and sukuk,” said President/ Chief Executive Officer, Datuk Chung Chee Leong.
“Despite a challenging market environment, the Company’s Sukuk continued to garner interest from investors which demonstrates their confidence and support for the Company. The issuance was concluded via private placement and competitively priced at 40 bps above the corresponding Malaysian Government Investment Issues,” added Datuk Chung.
On the second transaction, he emphasised that “as the market continues to weigh between the acceleration of monetary policy tightening, the fear of such actions may increase the probability of a recession. This has contributed to the continued volatility in the fixed income market. Domestic investors, looking for safe harbour in this uncertain period, led to the successful pricing of the Company’s issuances.”
As such, the pricing of the 1-year and 2-year CMTNs were concluded at 48 basis points (bps) and 49 bps above the corresponding Malaysian Government Securities, while the 3-year SRI Sukuk was concluded at 45 bps above Malaysian Government Investment Issue.
The IMTNs and CMTNs will be redeemed at their full nominal value upon maturity, are unsecured obligations of the Company, ranking pari passu with all other existing unsecured obligations of the Company.
Cagamas plays a major role in Sukuk origination and continues to be an innovator in the mortgage finance and securitisation market. The Cagamas papers are listed and traded under the Scripless Securities Trading System of Bursa Malaysia.
Cagamas’ corporate bonds and Sukuk continue to be assigned the highest ratings of AAA and P1 by RAM Rating Services Berhad and AAA/AAAIS and MARC-1/MARC-1IS by Malaysian Rating Corporation Berhad, denoting its strong credit quality. Cagamas is also well regarded internationally and has been assigned local and foreign currency long-term issuer ratings of A3 by Moody’s Investors Service Inc. that are in line with Malaysian sovereign ratings.
The Cagamas model is well regarded by the World Bank as the most successful secondary mortgage liquidity facility. Cagamas is the second largest issuer of debt instruments after the Government of Malaysia and the largest issuer of AAA corporate bonds and Sukuk in the market. Since incorporation in 1986, Cagamas has cumulatively issued circa RM366.3 billion worth of corporate bonds and Sukuk.
IILM Continues Consecutive Monthly Auction in June and July 2022 with Two Reissuances of Short-Term A-1 Rated Sukuk Including a Debut 12-month Tranche Raising an Aggregate US$1.86bn
Kuala Lumpur – The International Islamic Liquidity Management Corporation (IILM) held two separate auctions in June and July 2022 reissuing US$1.86 billion of short-term “A-1” rated Sukuk across four different tenors of one month, three-months, 6 months and, for the first time, 12 months.
In the first auction on 7 June 2022, the IILM reissued a total of US$1.03 billion short-term “A-1” rated Sukuk across three different tenors of one, three and six-months, priced as follows:
- US$250 million of 1-month tenor certificates at a profit rate of 1.36%
- US$420 million of 3-month tenor certificates at a profit rate 1.88%
- US$360 million of six-month tenor certificates at a profit rate of 2.35%.
This Sukuk reissuance marked the IILM’s seventh Sukuk auction for 2022. The auction garnered significant interest among Islamic Primary Dealers and investors across the GCC markets as well as Asia. The competitive tender witnessed a strong orderbook in excess of US$1.86 billion, representing an average bid-to-cover ratio of 181%.
In the second auction on 4 July 2022, the IILM reissued a total of US$830 million short-term “A-1” rated Sukuk across three different tenors of three, six and – for the first time – 12-months, priced as follows:
- US$250 million of 1-month tenor certificates at a profit rate of 1.90%
- US$330 million of 3-month tenor certificates at a profit rate 2.45%
- US$250 million of 12-month tenor certificates at a profit rate of 3.65%.
This Sukuk reissuance marked the IILM’s eighth auction for 2022. According to the Corporation, the auction garnered significant appetite among Islamic Primary Dealers and investors across the GCC markets as well as Asia. The competitive tender witnessed a strong orderbook in excess of US$1.59 billion, representing an average bid-to-cover ratio of 192%.
Dr. Umar Oseni, Chief Executive Officer of the IILM, commented: “We are pleased with the conclusion of today’s US$830 million auction, right before the Eid al-Adha holidays. This auction is indeed a landmark for us, as it marks the IILM’s inaugural issuance of a 12-month tenor Ṣukuk and we are glad that it was well received by the market, with the demand for the tranche reaching 1.85 times the issuance size (of US$250 million).”
Despite market volatility in a rising rate environment to combat inflation, he added, “today’s successful issuance continues to demonstrate the IILM’s commitment and key role in diversifying the supply of high quality Sharia’a-compliant liquidity instruments, particularly in commencing to build out the issuance yield curve up to 12 months. We are confident that the IILM’s USD issuances will continue to fulfil the demands of institutions offering Islamic financial services and contribute to the stability of the wider Islamic finance industry.”
Further to today’s reissuance, the IILM has achieved year-to-date cumulative issuances totalling USD 8.06 billion through 22 Ṣukuk series. The IILM will continue to reissue its short-term liquidity instruments monthly as scheduled in its issuance calendar.
The IILM is a regular issuer of short-term Ṣukuk across varying tenors and amounts to cater to the liquidity needs of institutions offering Islamic financial services. The IILM has issued a total of US$81.82 billion across 179 short-term Sukuk issuances over the last eight years, reflecting the organisation’s ability to provide high quality Sharia’a compliant instruments and reliable offerings to Primary Dealers and investors, as well as offering stability to the global Islamic liquidity market.
The IILM’s short-term Sukuk programme is rated “A-1” by S&P with current outstanding issuance size amounting to US$3.51 billion. According to the IILM, the primary dealers that participated in the auction conducted under the competitive bidding of the Bloomberg AUPD Platform included Abu Dhabi Islamic Bank; Al Baraka Turk Participation Bank; Barwa Bank; Boubyan Bank; CIMB Islamic Bank Berhad; First Abu Dhabi Bank; Kuwait Finance House; Macquarie Bank; Maybank Islamic Berhad; Qatar Islamic Bank; and Standard Chartered Bank.
Saudi Methanol Chemicals Company Pens Two Murabaha Financing Agreements Totalling SAR695m (US$184.96m) to Finance Expansion Plans
Jeddah – Saudi Arabia’s Methanol Chemicals Company (Chemanol) signed two Murabaha financing agreements with two local banks on 13th July 2022 to finance the expansion of its methanol plant and to boost the company’s balance sheet.
The facilities comprised a SAR455 million (US$121.09 million) Murabaha facility provided by Banque Saudi Fransi and a SAR240 million (US$63.87 million) Murabaha facility provided by Alinma Bank.
The proceeds from the SAR455 million Murabaha facility explained Chemanol in a disclosure to the Saudi Exchange (Tadawul) “is to support the financial position of the company and settle all existing loans to reduce the finance costs, as new financing has been obtained at competitive costs and terms, which is expected to have a positive financial impact on the company through significant finance cost savings as compared to the previous financing arrangement.”
Similarly, the proceeds from the SAR240 million Murabaha facility will be used “to complete the Methanol expansion project which will increase the production capacity, which is the mainstay of the company’s future projects and will mainly lead to sustainable profitability and reduce production costs for all of the company’s products.”
The facilities have a tenor of 8.5 years ending in December 2030 and are guaranteed by promissory notes lodged by Chemanol with the respective banks.
State Bank of Pakistan Adopts Four New AAOIFI Accounting Standards on Salam, Istisna’a, Musaqat and Multiple Contracts
Islamabad – The State Bank of Pakistan (SBP), the central bank, in July 2022 adopted four more Shariah standards of the Bahrain-based multilateral Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
These include Shariah standards on: i) Salam and Parallel Salam; ii) Istisna’a and Parallel Istisna’a; iii) Combination of Contracts; and iv) Irrigation Partnership (Musaqat), with certain clarifications and amendments.
Adopting and implementing AAOIFI standards, said the SBP, is aimed at “strengthening the Shariah compliance of the local Islamic banking industry in line with the best international practices, which is one of the key pillars of SBP’s 3rd Strategic Plan for the Islamic Banking Industry 2021-25.”
The SBP has been adopting AAOIFI and other Shariah Standards in a systematic and gradual manner. “The standardization and harmonization in Shariah practices and procedures are helping in elevating the local Islamic banking industry at par with the international best practices.
With adoption of these four standards, the total number of AAOIFI Shariah standards adopted by SBP has reached twenty while work on remaining standards is underway.
According to the SBP, Salam is a mode of finance frequently used in agriculture while Istisna’a is a mode generally used by Islamic banking institutions to provide financing where manufacturing/assembling/processing is involved. The Irrigation partnership (Musaqat) standard can be used in the agriculture sector, especially for orchard financing while the standard on combination of contracts provides guidance to Islamic banking institutions when making use of multiple contracts in their various arrangements to meet the needs of the customers.
The SBP has already issued detailed guidelines on Islamic financing for the agriculture sector.
Kuala Lumpur – Tenaga Nasional Bhd (TNB), the Malaysian multinational electricity company, confirmed that it issued RM4.0 billion (US$900 million) in nominal value Islamic Medium Term Notes (iMTNs) on 30 June 2022.
In a disclosure to Bursa Malaysia, TNB said that the issuance was done under the company’s RM10 billion (US$2.24 billion) Islamic Medium Term Notes Programme of based on the Sharia’a principle of Wakalah bi al-Istithmar. CIMB Investment Bank Berhad and Maybank Investment Bank Berhad, who acted as Joint Principal Advisers and Joint Lead Arrangers for the iMTN Programme, also acted as the Joint Lead Managers/Joint Bookrunners for the RM4.0 billion Sukuk Wakalah.
The transaction comprised five tranches – a 7-7ear RM1,120 million (US$252.30 million) tranche with a periodic distribution rate of 4.73% per annum payable bi-annually; a 10-year RM300 million (US$67.31 million) tranche with a periodic distribution rate of 4.84% per annum payable bi-annually; a 15-year RM880 million (US$197.45 million) tranche with a periodic distribution rate of 5.23% per annum payable bi-annually; a 20-year RM500 million (US$112.19 million) tranche with a periodic distribution rate of 5.36% per annum payable bi-annually; and a 25-year RM1,200 million (US$269.25 million) tranche with a periodic distribution rate of 5.57% per annum payable bi-annually.
Tenaga Nasional Berhad RM4bn (US$900m) Sukuk Wakalah June 2022
Tranche 1 | Tranche 2 | Tranche 3 | Tranche 4 | Tranche 5 | |
Issue Size | RM1,120m (US$252.3m) | RM300mn (US$67.31m) | RM880m (US$197.45m) | RM500m (US$112.19m) | RM1,200m (US$269.25m) |
Tenor | 7 years | 10 years | 15 years | 20 years | 25 years |
Periodic Distribution Rate | 4.73% p.a. | 4.84% p.a. | 5.23% p.a. | 5.36% p.a. | 5.57% p.a. |
Source: Compiled by Mushtak Parker from Tenaga Nasional Berhad data July 2022
In early June, TNB’s wholly-owned subsidiary TNB Power Generation issued a RM1.5 billion (US$340 million) Sustainability Sukuk Wakalah to fund its Nenggiri Hydroelectric Power Plant project in Kelantan.
The Sukuk was similarly issued under TNB’s 30-year Sukuk Wakalah Programme of up to RM10 billion, which was lodged with the Securities Commission Malaysia in April 2022.
That issuance comprised three tranches – a first tranche with a size of RM150 million (US$33.99 million) with a 10-year tenor and priced at a periodic distribution rate of 4.7% per annum; a second tranche with a size of RM750 million (US$169.93 million) with a tenor of 15 years and priced at a periodic distribution rate of 5.05% per annum; and a third tranche with a size of RM600 million (US$139.95 million) with a tenor of 20 years and priced at a periodic distribution rate of 5.20% per annum respectively.
Affin Bank Group Launches Pioneering Affin Solar Financing-i Plan to Support Retail Customers to Transition to Solar Energy Options
Kuala Lumpur – Another sign of the growing innovation of Islamic financial institutions in the sustainable and SRI space related to climate action and transition to clean energy, is the launch in June 2022 by Affin Bank Berhad and Affin Islamic Bank Berhad of a pioneering AFFIN Solar Financing-i product.
The product is a sustainable and personal financing plan for the banks’ retail customers to purchase and install Solar Photovoltaic (SPV) System at residential and non-residential properties.
Nazlee Khalifah, Chief Executive Officer, Affin Islamic Bank, stressed that
“Affin Bank and Affin Islamic Bank are the only banks that offer this financing facility to new and existing customers. We believe there is high awareness and interest for renewable energy and with AFFIN Solar Financing-i, our goal is to push for solar energy to be more accessible to Malaysians.”
According to Khalifah, the SPV System are solar panels that capture the energy of sunlight which is converted into electricity. Tapping into this power source with its versatility and many benefits, AFFIN Solar Financing-i offers a simple and easy way for home and building owners to lower their monthly electricity bills, reduce their carbon footprint and see a fast return on their investment.
Affin Solar Financing-i provides flexible financing tenure of up to 10 years with a maximum amount of RM150,000, with various payment mode options.
Affin Bank, which was awarded the Sustainable Energy Financing Award by the Malaysian Ministry of Energy and Natural Resources (KeTSA) at the National Energy Awards 2020, aims to make AFFIN Solar Financing-i a financial solution that addresses as well as bridges the gap of the smaller-scale SPV segment by allowing retail customers, home and building owners to purchase and install the SPV panels.
“Affin Solar Financing-i,” added Khalifah, “is one of the steps taken by the Bank to increase the growth of renewable energy in the country in line with the Government’s renewable energy aspiration and Renewable Energy Transition Roadmap (RETR) 2035. The aim is to provide the means needed for Malaysians to progress towards sustainable development. We believe this product will help in growing green economies and green societies in Malaysia.”