Boustead Plantations inks RM45mil green finance agreement with China Construction Bank7 June 2022
Boustead Plantations Berhad enter into RM45 million green financing agreement with China Construction Bank (Malaysia) Berhad7 June 2022
BOUSTEAD Plantations Bhd (BPB) today has entered into a RM45 million green financing agreement with China Construction Bank (M) Bhd (CCBM) to facilitate its sustainable replanting exercise.
BPB seeks to leverage the financing to maximise its ongoing accelerated sustainable replanting programme, particularly for its plantation assets in Sabah, from this year until 2024.
The financing agreement was signed by BPB director Ahmad Shahredzuan Mohd Shariff and its company secretary Affendi Mohd Yob, while CCBM was represented by its executive VP Wang Shaoqiang in a ceremony held at Royale Chulan Damansara.
Witnessing the ceremony were BPB CEO Zainal Abidin Shariff and CCBM CEO Wang QiJie.
In line with its long-standing sustainability stance, Zainal Abidin said BPB is always on the lookout for collaborative financing exercise in the financial and debt market that emphasises on the principles of environmental, social and governance.
“BPB has demonstrated a positive track record on its adherence towards sustainability practices, with 100% of its land area has been certified with Malaysian Sustainable Palm Oil while six of its Roundtable on Sustainable Palm Oil certified palm mills are accredited with the Supply Chain Certification System.
Our sustainable agricultural practice through, amongst others, zero burning technique which is environmentally friendly and recycling of nutrients contained in palm biomass,” Zainal Abidin said in a statement.
“The green financing agreement would allow BPB to complement its ongoing plantations performance improvement programme by optimising the potential of its plantation assets in Sabah,” he added.
Meanwhile, Wang said that the signing was a significant milestone for CCBM as it will be the bank’s first Green Plantation Financing in Malaysia.
“CCBM would like to see a continuation of the bank’s joint efforts to build a long-term and strategic partnership with BPB,” he added.
BPB’s debt-to-equity ratio has improved in recent years owing to its strong financial performance, with gearing stands at 0.28 times as at March 31, 2022 from Dec 31, 2021 position of 0.37 times.
Boustead Holdings Bhd and Lembaga Tabung Angkatan Tentera are the major shareholders of BPB.
CCBM is a subsidiary of China Construction Bank Corp (CCB), a leading large-scale commercial bank headquartered in Beijing with a presence in 31 countries globally. CCB ranks second among global banks by Tier 1 capital with an asset size of 30 trillion yuan (RM19.5 trillion) as at Dec 21, 2021.
Apart from supporting the client’s capital raising and investment requirements, CCBM together with China Construction Bank Corporate Labuan branch is committed to supporting Malaysia’s green and sustainable development, technology, and digital advancements in achieving the country’s economic empowerment.
Source: The Malaysian Reserve