Kuala Lumpur, 22 February – Hong Leong Bank (“HLB” or the “Bank”) introduced today the ‘HLB SME Solar Financing’, a green energy financing facility specially developed for Malaysian SMEs looking to install small-scale solar photovoltaic (“PV”) systems. This program offers a financing amount of up to RM1 million per SME customer with a maximum loan tenure of seven (7) years at an attractive interest rate.
Many businesses, especially SMEs are undergoing a transformation to operate with greater cost efficiency, which is even more important amidst the economic pressures and challenges brought upon by COVID-19. One of the simplest ways to reduce costs is on electricity bills through adopting renewable energy technologies using solar PV.
In the past, solar PV installations were mostly large-scale involving bigger companies or solar farms, with multi-million Ringgit investments and lengthy approval processes. Some who have pursued smaller installations have been denied due to lack of, or have no access to financing facilities. ‘HLB SME Solar Financing’ is a facility and solution that aims to address and bridge the gap of smaller-scale solar PV installations which is what SMEs would be looking for.
Under this program, the Bank is empaneling seven (7) leading local service providers namely Plus Solar Systems Sdn Bhd, Solarvest Holdings Bhd, Mattan Engineering Sdn Bhd, Samaiden Sdn Bhd, ERS Energy Sdn Bhd, Pekat Solar Sdn Bhd and Gading Kencana Sdn Bhd which will provide a comprehensive one-stop solar PV installation, commissioning, operations and maintenance services to HLB’s SME clients.
Domenic Fuda, Group Managing Director and Chief Executive Officer of HLB said, “At HLB, we place increasing emphasis on sustainability and we are continuously working towards strengthening our own sustainability practices. This includes having a Business and Corporate Banking ESG Framework to help the Bank incorporate Environmental, Social and Governance considerations in the credit evaluation of our SME and Corporate customers as well as providing financing products that can drive both cost and energy efficiencies, which in turn drive compliance with ESG principles. The new solar financing program will not only help our clients in reducing their operating expenses and carbon footprint in the long run, but also contribute towards building a vibrant and sustainable ecosystem while supporting the national initiative to increase the share of renewable energy of the country’s power mix to 20% by 2025.”
Yow Kuan Tuck, Managing Director of Business & Corporate Banking of HLB shared that the initial allocation of RM300 million for the new solar financing facility will encourage more businesses to look at sustainability as an investment which can bring long-term competitive advantages rather than purely a cost of doing business.
“We’ve received a significant number of inquiries from our SME customers on financing for small-scaled solar PV installations. The demand is there and it also shows that many businesses are keen in adopting greener and cleaner energy sources for sustainability and concurrently be more cost efficient by installing solar PV panels on the rooftops of their business premises. The introduction of ‘HLB SME Solar Financing’ is well-timed as the on-going economic challenges caused by COVID-19 have made SMEs take steps to recover and rebuild their business, which includes cushioning for future rise in energy costs as well as meeting the rising demand of conscious consumerism for sustainable business,” added Yow.
For more information on the HLB SME Solar Financing, please visit https://www.hlb.com.my/SMESolar