KUALA LUMPUR: Hong Leong Bank Bhd (HLB) has fully subscribed to a RM350 million Asean Green Bond issued by Exio Logistics Sdn Bhd.
HlB's unit Hong Leong Investment Bank Bhd is the principal adviser of the RM350 mullion bond issuance.
The green bond is the first in Malaysia specifically designed to finance green warehousing, paving the way for the development of a sustainable logistics hub in the City of Elmina, Shah Alam.
Exio Logistics, a joint venture between IJM Corporation Bhd and FMM Elmina Sdn Bhd, is developing a state-of-the-art logistics hub designed to set new benchmarks in sustainability and efficiency.
The facility incorporates automatic storage retrieval systems (ASRS) technology, providing tenants and operators with the dual benefits of achieving operational efficiency and excellence while working towards their sustainability goals.
Upon completion, Storio Sdn Bhd will be the operator of the entire logistics hub.
HLB group managing director and chief executive officer Kevin Lam said the bank is committed to further supporting the industry through green financing and environmental, social and governance (ESG) advisory.
"ESG financing is a key growth area, not just for our organisation, but for the wider economy in general.
"As shown through this green bond issuance and other green financing initiatives, we are committed to being a partner for businesses to strike a balance between being environmentally-conscious while still being economically competitive.
"In fact, we have approved over RM3.2 billion on renewable energy financing and RM3.97 billion in green building/township financing in the financial year 2023 (FY23), proving our commitment to capitalising on climate-related opportunities and supporting the growth of green projects in Malaysia and beyond," he said in a statement.
Exio Logistic's representative Lee Chun Fai said leveraging green bonds to finance the company's development is a win-win approach, providing with the flexibility to fundraise for its projects, while ensuring that sustainability considerations are integrated.
Lee, who is also the group chief executive officer and managing director of IJM, said this marks a significant milestone for Exio Logistics as it lead the way in developing environmentally conscious infrastructure.
"Our commitment to green financing underscores our goal of advancing industry standards and moving towards achieving global carbon neutrality.
"We are enthusiastic about this collaboration with Hong Leong and look forward to pursuing more green-focused projects in the future," he added.
HLIB is the principal adviser, lead arranger, lead manager, lodgement party, and facility agent for the green bond issuance.