PERMODALAN Nasional Bhd (PNB) has secured a significant RM1.26 bil (£210.0 mil) Islamic sustainable financing facility from OCBC Bank (Malaysia) Bhd to refurbish an office tower located at One Exchange Square, 175 Bishopsgate, London. OCBC Malaysia, acting as the sole lead arranger and sustainability adviser, announced this development today.
The refurbishment aims to achieve an “Excellent” rating under the Building Research Establishment Environmental Assessment Method (BREEAM) and a targeted NABERS UK 5-Star Rating post-completion. These certifications underscore PNB’s commitment to environmental, social, and governance (ESG) principles by investing in green and transitional assets.
Scheduled for completion in 2026, the office tower will operate with net-zero carbon emissions through energy efficiency measures, electrification, and on-site energy generation.
PNB private and strategic investment CIO Rick Ramli highlighted the company’s broader ESG goals.
“PNB has established 10 ESG commitments in our Sustainability Framework launched in 2022, which include investing up to RM10.0 bil of fresh capital into green and transition assets by 2030.
“As a government-linked fund management company, it is essential for us to embed ESG considerations into our investment decisions to augment our efforts in identifying opportunities for value creation and managing ESG risks,” he said.
“We are committed in ensuring a progressive transition towards a greener and sustainable future for long term resilience, amidst a changing global investment landscape. The refurbishment of the property is one important part of our efforts towards investing into green and transition assets,” he added.
In line with its ESG commitments, PNB plans to donate materials removed during the demolition phase including steel and internal finishes to a local charity in London. These materials will be used to construct a new nursery classroom at a primary school, benefiting the local community and children including those with disabilities.
Furthermore, OCBC Bank (Malaysia) Bhd’s managing director and head of investment banking Tan Ai Chin expressed support for PNB’s initiative.
“The OCBC group is the existing lender supporting PNB in the acquisition of this property and we are glad to continue to support PNB’s proactive effort to refurbish and upgrade the property to meet the highest green certification standard post completion.”
She added that in addition to the shariah-compliant structure, which complements the green element of the facility, PNB’s commendable efforts in doing good to support the local community as part of the project development truly demonstrate its strong commitment to the best ESG practices.
“This collaboration with PNB exemplifies OCBC Malaysia’s relentless effort in further advancing the adoption of sustainable and responsible best practices amongst our business partners to create positive social, environmental and economic impact on communities while also ensuring a more sustainable future,” Tan further added. – June 5, 2024
