RHB Banking Group has significantly increased its commitment to sustainable financing, raising its target to RM90 billion in Sustainable Financial Services (SFS) by 2027.
This new goal replaces the previous RM50 billion target set for 2026 and underscores RHB’s dedication to achieving Net Zero by 2050.
The bank aims to support Malaysia’s transition to a low-carbon economy and contribute to similar efforts across ASEAN.
RHB is introducing several initiatives to facilitate this transition, including Malaysia’s first Low Carbon Transition Facility (LCTF) Portfolio Guarantee to improve access to green financing for businesses.
A new RM1 billion Sustainable Trade Finance Programme/-i will support renewable energy and energy efficiency projects.
The bank has also launched a Sustainable Cross Currency Repurchase Transaction, which reduces financing costs for green and social financing activities using Government and Government Guaranteed Securities.
These new products complement existing offerings like the Green Product Bundling Scheme for SMEs, which offers tailored financing solutions across four categories: Green Energy, Green Buildings, Green Products, and Green Processes, and has mobilised nearly RM6.2 billion to date.
RHB also continues to offer ESG-linked financing solutions with preferential rates for companies demonstrating strong sustainability performance.
The bank is actively collaborating with industry partners to expand the reach of green financing, particularly for SMEs.
As of December 2024, RHB has engaged with over 1,000 SMEs nationwide.
Since launching its Sustainability Strategy in 2022, RHB has mobilised over RM40 billion in sustainable finance, with 60% in green financing, 21% in social financing, and the balance in ESG-linked financing & investment, surpassing its initial RM50 billion target.
Dato’ Mohd Rashid Mohamad, Group Managing Director/Group Chief Executive Officer of RHB Banking Group, said,
“Having already achieved approximately 85% of our RM50 billion sustainable financial services target, we see a clear and growing demand for capital that enables real transition. By raising our ambition to RM90 billion, we are doubling down on our commitment to empower businesses, especially SMEs, to accelerate their shift towards low-carbon practices.
Transition financing goes beyond just providing funds; it’s about empowering businesses to navigate change, drive innovation, and ensure that every business, regardless of size, has the capability to thrive in a changing economy.”
Featured image credit: Edited from Freepik
