Kuala Lumpur, 13 September 2024 - Alliance Islamic Bank Berhad (“Alliance Islamic Bank” or the “Bank”) today announced a strategic partnership with Asia Carbonx Change Plt (“Carbonx”) to offer a purpose-built sustainability programme with green and transition financing solutions to help SME businesses in their sustainability journey.
The new Islamic Sustainability Financing Programme (“ISF Programme”) which also encompasses Low Carbon Transition Facility-i, breaks new ground in providing businesses with comprehensive financing options to enable their sustainability agenda, reduce carbon footprint and secure Renewable Energy Certificates (“RECs”).
Through the partnership, Carbonx acts as the intermediary to secure RECs for the Bank’s eligible solar financing solutions customers. With RECs, companies can confidently assert that the electricity it consumes is derived from renewable resource, thereby significantly reducing its Scope 2 which are emissions via consumption of purchased electricity.
Carbonx will facilitate the registration of these RECs in alignment with the prescribed allocation, and also offer customers the opportunity to monetise their RECs.
“In line with our aim of building an ESG-focused organisation, we recognise the pivotal role we play in developing sustainable financing solutions and delivering sustainable economic value for the communities we serve. In achieving this, we provide various avenues to support our customers in transitioning their businesses to meet the challenges of climate change. Our strategic alliance with Carbonx exemplifies our continuous efforts to innovatively empower and encourage businesses to adopt sustainable practices, reduce their carbon footprint, and enhance their competitiveness in the global market,” said En. Rizal IL-Ehzan bin Fadil Azim, Chief Executive Officer of Alliance Islamic Bank.
Customers qualify for RECs when they opt for solar financing solutions or energy efficiency via the Bank’s solar engineering, procurement, construction and commissioning (“EPCC”) partners, while those with financing exceeding RM500,000 will be entitled to complimentary RECs for up to two years. These RECs elevate Alliance Islamic Bank’s financing proposition, which offers businesses up to 100% margin of financing, zero upfront capital and the potential to monetise their renewable energy assets. The comprehensive package aims to make the transition to sustainable practices more attractive and financially rewarding.
In addition to the RECs, the ISF Programme distinguishes itself as a more holistic green financing package with the inclusion of takaful protection for customers’ solar panels. The ISF Programme supports Alliance Bank’s goal of achieving RM15 billion new sustainability banking business by FY2027.
Alliance Bank’s efforts to broaden its consumer business is gaining traction with a 13% YOY loan growth while acquiring its highest ever NTB customers, representing more than 37% YOY increase to 107,000. This was driven by strong digital acquisition and solid growth in the HENRY (High Earners Not Rich Yet) segment.
For more information about Alliance Islamic Bank or this collaboration, please visit
https://www.alliancebank.com.my/Islamic.
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