Bank Islam and Sand Town Solar Ink RM91.5 Million Financing Deal for Solar PV Farm in Perak

Bank Islam Malaysia Berhad (Bank Islam), the leading Islamic bank in Malaysia, has inked a financing agreement valued at RM91.5 million with Sand Town Solar Sdn Bhd (STS), a subsidiary of Kumpulan Gading Kencana Sdn Bhd (GKSB). STS specializes in renewable energy services, particularly in designing and installing solar photovoltaic systems, as well as establishing and managing electrical and energy management systems.

The financing from Bank Islam will support STS’s 29.99 MW solar photovoltaic (PV) farm project in Bidor, Perak. Under The New Enhanced Dispatch Arrangement (NEDA) mechanism, STS will supply electricity generated from the solar farm to Tenaga Nasional Berhad.

This funding will cover essential capital expenses for the solar PV farm, including land refinancing and development costs. The agreement was signed by Ahmad Haliman Abd Halim, Director of Commercial Client Solutions, Group Institutional Banking at Bank Islam, and Dato’ (Dr) Ir. Muhamad Guntor Mansor Tobeng, Group Managing Director of GKSB.

The signing ceremony was attended by YAB Dato’ Sri Haji Fadillah Yusof Haji Yusof, Deputy Prime Minister and Minister of Energy Transition & Water Transformation, as well as Dato’ Mohd Muazzam Mohamed, Group Chief Executive Officer of Bank Islam, and Datin Hasnah Awang, Executive Director of STS.

This collaboration marks Bank Islam as the first Islamic banking institution to provide financing facilities for private companies under NEDA, contributing to Malaysia’s energy transition towards renewable sources like solar power. Dato’ Mohd Muazzam Mohamed, CEO of Bank Islam, emphasized the bank’s commitment to environmental, social, and governance (ESG) principles and its support for the renewable energy sector.

Dato’ (Dr) Ir. Muhamad Guntor Mansor Tobeng, Group Managing Director of GKSB, expressed gratitude for Bank Islam’s support and emphasized their joint vision to promote green financing and contribute to the country’s clean energy goals.

Both parties expressed their dedication to fostering sustainable development and achieving Malaysia’s net-zero carbon target by 2050 through further collaborations in the renewable energy sector.