Saturday, September 24, 2011

Exim Bank evaluates RM500m green loans

KUALA LUMPUR: Export-Import Bank of Malaysia Bhd (Exim

Bank) is evaluating loan applications close to RM500 million for green echnology projects in sync with the government’s call for financial nstitutions to support such projects.

Managing director and chief executive officer Adissadikin Ali said the bank ad received several applications from Malaysian companies involved in green echnology projects overseas particularly in the Asian region.

"We are currently evaluating loan applications for construction of public housing projects using the industrialised building systems (IBS) concept in a few countries in South Asia, the Middle East and Australasia,” he told BERNAMA.

Adissadikin said over the last three months, the company received many enquiries for green technology and renewable energy projects in some Asian countries and these include mini-hydro, biomass and incinerator projects.

He is bullish on the green technology sector and expects to receive overwhelming response from domestic firms for such projects.

"The world is going green and the first to go green are the developed countries. The developing and less-developed nations will follow suit,” he said.

Adissadikin also said Exim Bank, which sees a growing number of loan applications for cross-border trade finance, targets 30 per cent of its total loans to be approved next year to come from the sector.

The bank aims to approve deals worth RM3 billion for next year. “We are growing our trade financing numbers. There are now demand for trade finance from non-traditional markets like Kazakhstan,” he said.

For the last six months, trade finance projects made up about 40 per cent of the RM1.7 billion that was sanctioned to finance 54 deals, he said.

"These are financing for Malaysian companies such as the small-and medium-sized-enterprises (SMEs) that produced locally and sell overseas.

They are involved in palm oil, processed rubber and other products that are manufactured locally and exported.

The major destination of palm oil is the traditional export market for Malaysia, particularly China, India and other developed countries,” he said.

Adissadikin also said the current world economic situation may not severely affect the bank as the slowdown has also hit other parts of the world, mainly in Europe and the United States.

"Asia is still going strong and 60 per cent of our exposure is in Asia,” he added. - Bernama

Read more: Exim Bank evaluates RM500m green loans

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