KUALA LUMPUR: OCBC Bank (Malaysia) Bhd (OCBC Bank) has launched its maiden Sustainability-linked Floating Rate Negotiable Instruments of Deposits (FRNID) that comes with environmental, social and governance (ESG) components.
In a press release, OCBC Bank stated the Callable Interest Cumulation Floating Rate Negotiable Instruments of Deposit (CIC FRNID) is an ESG funding that enables the financial institution’s clients to earn a probably greater return than a set deposit, by taking a view on KLIBOR charges.
“The sustainability targets are fulfilled by guaranteeing the funds collected from the structured funding are
invested into belongings that fulfil the financial institution’s inside ESG Framework.
“The initiative rides on the financial institution’s technique and dedication to considerably improve its choices in inexperienced financing and funding choices by 2025,” it stated.
OCBC Bank managing director and head of client monetary companies Anne Leh stated the financial institution’s heightened emphasis on sustainability in latest instances has brought on it to think about sustainability from extra angles than earlier than, the newest being by way of a FRNID.
“We are creating extra merchandise that take ESG elements into consideration, spurred on by the virtually RM5 billion in sustainable belongings below administration (AUM) we achieved on the finish of final yr.
“We consider there’s much more that banks can do to drive the sustainability agenda and meet the rising wants and share of thoughts of clients for low-risk funding merchandise like this, to not point out tapping into the huge array of alternatives on the market immediately,” she stated.
She added {that a} important quantity of clients have began to actively pursue ESG-based investments and the financial institution is dedicated to making sure the wants of these with conservative threat appetites are met by way of its principal-protected FRNIDs.
The CIC FRNID is appropriate for buyers in search of a low-risk funding that’s 100 per cent principal-protected when held to maturity whereas in search of probably greater returns in comparison with mounted deposits. – Bernama
