Just a day after the announcement to review the making and selling of low emission vehicles under the Twelfth Malaysia Plan (12MP), RHB Bank has launched the RHB Sustainability Financing Programme (SFP) that focuses on financing products for green products and services.
To cover as many products and services that support low carbon emissions as well as sustainability to the environment for both businesses and individuals, RHB Bank has set four categories for the SFP, namely Green Building, Green Process, Green Energy and Green Products.
To promote the purchase of eco-friendly products such as hybrid, plug-in hybrid and electric vehicles, RHB Bank via the Green Products in the SFP is offering an ‘Auto Financing’ plan with an attractive interest rate as low as 1.99% (flat rate equivalent) across all financing tenures for up to nine years amounting to a maximum loan of RM500,000.
To further keep customers within the RHB Group, an additional discount of up to 10% in premiums is provided when they opt for insurance coverage by RHB Insurance.
Small and Medium Enterprises (SMEs) meanwhile can benefit via lower preferential rates and longer tenure plus relevant tax incentives, for example, a business might need financing for equipment and machinery towards supporting customers’ decarbonisation efforts or even design, construction, operation and maintenance of buildings with eco-friendly features.
RHB Bank targets to grant a total of RM1 billion in new financing via the RHB Sustainability Financing Programme by 2025. More information about the new programme can be found on their website.
As of May 31st 2021, RHB Group’s Green Financing Commitment stood at RM3.25 billion, of which approximately 20% is in renewable energy projects. In line with the governments move to discontinue the construction of new coal-fired power plants, RHB Group also naturally will not be pursuing opportunities or provide financing for power plants projects that consume such fuel.