HLB introduces HLB SME Solar Financing for SMEs

by BERNAMA / Pic by MUHD AMIN NAHARUL

Hong Leong Bank (HLB) has introduced the ‘HLB SME Solar Financing’, a green energy financing facility specially developed for Malaysian small and medium enterprises (SMEs) looking to install small-scale solar photovoltaic (PV) systems.

This programme offers financing of up to RM1 million per SME customer with a maximum loan tenure of seven years at an attractive interest rate.

In a statement today, HLB said under this programme, the bank is empanelling seven leading local service providers namely Plus Solar Systems Sdn Bhd, Solarvest Holdings Bhd, Mattan Engineering Sdn Bhd, Samaiden Sdn Bhd, ERS Energy Sdn Bhd, Pekat Solar Sdn Bhd and Gading Kencana Sdn Bhd which will provide a comprehensive one-stop solar PV installation, commissioning, operations and maintenance services to HLB’s SME clients.

“Many businesses, especially SMEs are undergoing a transformation to operate with greater cost efficiency, which is even more important amidst the economic pressures and challenges brought upon by COVID-19. One of the simplest ways to reduce costs is on electricity bills through adopting renewable energy technologies using solar PV,” it said

In the past, HLB said solar PV installations were mostly large-scale involving bigger companies or solar farms, with multi-million ringgit investments and lengthy approval processes.

“Some who have pursued smaller installations have been denied due to lack of, or have no access to financing facilities. ‘HLB SME Solar Financing’ is a facility and solution that aims to address and bridge the gap of smaller-scale solar PV installations which is what SMEs would be looking for,” it added.

Group managing director and chief executive officer Domenic Fuda said the new solar financing programme will not only help HLB clients in reducing their operating expenses and carbon footprint in the long run, but also contribute towards building a vibrant and sustainable ecosystem while supporting the national initiative to increase the share of renewable energy of the country’s power mix to 20 per cent by 2025.

“At HLB, we place increasing emphasis on sustainability and we are continuously working towards strengthening our own sustainability practices.

“This includes having a Business and Corporate Banking ESG Framework to help the bank incorporate environmental, social and governance considerations in the credit evaluation of our SME and corporate customers as well as providing financing products that can drive both cost and energy efficiencies, which in turn drive compliance with ESG principles,” he said.