Maybank, OCBC Bank back YTL green data centre with RM1b Islamic financing

MALAYAN Banking Bhd (Maybank) and OCBC Bank (M) Bhd are the joint mandated lead arrangers for a RM1.1 billion Islamic term financing facility granted to YTL DC South Sdn Bhd, a wholly owned unit of YTL Power International Bhd.

The transaction signifies YTL Power’s ongoing commitment towards transitioning to a green and circular economy, while contributing to its environmental objectives of climate change mitigation and the promotion of green buildings.

The facility was emplaced to fund the development of the 48 megawatts (MW) IT Load Hyperscale Data Centre (HDC) located in Kulai, Johor.

The Islamic syndicated term financing facility is based on the Shariah principles of Commodity Murabahah.

The 48MW HDC is part of YTL Power’s plans to develop Malaysia’s first 500MW green data centre park to be integrated with on-site solar photovoltaic power which aims to provide data storage colocation services to clients looking for more sustainable and lower carbon solutions within South-East Asia (SE Asia) (Green Data Centre Park).

The Green Data Centre Park serves as the foundation for achieving YTL Power’s greater objective of carbon neutrality for its data centres across the SE Asian region.

YTL Power MD Datuk Yeoh Seok Hong (picture) said the company’s focus on building up its new regional green data centre business, solar power generation capabilities and other renewable energy solutions is a natural evolution of YTL Power’s growth and development. 

As part of its allegiance towards advocating sustainable finance, OCBC Bank has doubled up its sustainable financing target to S$50 million (RM162.29 million) compared to a previous set target of S$25 million, to be achieved by 2025.

“This comes after OCBC Bank’s remarkable achievement of surpassing the initial target with a total S$34 million sustainable financing in 2021,” he said. — TMR / pic source: ytlfoundation.org