KUALA LUMPUR: OCBC Bank (Malaysia) Bhd (OCBC Bank) has launched its maiden Sustainability-linked Floating Rate Negotiable Instruments of Deposits (FRNID) that incorporates environmental, social and governance (ESG) elements.
In a statement, OCBC Bank said the Callable Interest Cumulation Floating Rate Negotiable Instruments of Deposit (CIC FRNID) is an ESG investment that allows the bank’s customers to earn a potentially higher return than a fixed deposit, by taking a view on KLIBOR rates.
"The sustainability goals are fulfilled by ensuring the funds collected from the structured investment are
invested into assets that fulfil the bank’s internal ESG Framework.
"The initiative rides on the bank’s strategy and commitment to significantly increase its offerings in green financing and investment options by 2025,” it said.
OCBC Bank managing director and head of consumer financial services Anne Leh said the bank’s heightened emphasis on sustainability in recent times has caused it to consider sustainability from more angles than before, the latest being through a FRNID.
"We are creating more products that take ESG factors into consideration, spurred on by the almost RM5 billion in sustainable assets under management (AUM) we achieved at the end of last year.
"We believe there is a lot more that banks can do to drive the sustainability agenda and meet the growing needs and share of mind of customers for low-risk investment products like this, not to mention tapping into the vast array of opportunities out there today,” she said.
She added that a significant number of customers have started to actively pursue ESG-based investments and the bank is committed to ensuring the needs of those with conservative risk appetites are met through its principal-protected FRNIDs.
The CIC FRNID is suitable for investors looking for a low-risk investment that is 100 per cent principal-protected when held to maturity while seeking potentially higher returns compared to fixed deposits. - Bernama