KUALA LUMPUR: RHB Banking Group has launched the RHB sustainability financing programme (SFP) with a target of RM1bil in new financing by 2025.

       This will include personal financing for retail customers’ solar panel purchases and auto financing rates for hybrid, plug-in hybrid and electric vehicles.

       In a statement, the banking group said the green financing product-bundling programme is aimed at reaching out to the needs of both small and medium enterprises (SMEs) and retail customers.

       Group managing director and CEO Datuk Khairussaleh Ramli said financial institutions play a vital role in delivering the country’s Intended Nationally Determined Contribution (INDC), which embodies efforts to reduce the country’s greenhouse gas emissions intensity of gross domestic product (GDP) by 45% by 2030 relative to its emission intensity of GDP in 2005.

       “The programme complements our existing green financing commitment and supports the nation’s aspirations in transitioning to a low-carbon and climate-resilient economy.“

       RHB said the four pillars of the SFP comprise green energy, green buildings, green process and green products, which aims at promoting sustainable development and supporting the nation’s transition to a low-carbon economy through green financing solutions that integrate environmental, social and governance criteria.

       Through the SFP bundling solutions, RHB said customers will benefit from preferential rates and longer loan or financing tenure as well as relevant tax incentives provided under the Green Investment Tax Allowance and Green Income Tax Exemption on their chosen facilities.

       SME customers may apply for financing facilities for renewable energy, construction, working capital and capital expenditure, with financing amount of up to RM10mil and tenures of up to 15 years, with a high margin of financing and competitive rates.

       RHB said retail customers can enjoy personal financing for solar panel purchases for up to RM100,000 with margin of financing of up to 100%, over a maximum tenure of seven years at attractive rates.