KUALA LUMPUR: OCBC Financial institution (Malaysia) Bhd (OCBC Financial institution) has launched its maiden Sustainability-linked Floating Fee Negotiable Devices of Deposits (FRNID) that comes with environmental, social and governance (ESG) components.
In a press release, OCBC Financial institution stated the Callable Curiosity Cumulation Floating Fee Negotiable Devices of Deposit (CIC FRNID) is an ESG funding that enables the financial institution’s clients to earn a probably greater return than a set deposit, by taking a view on KLIBOR charges.
“The sustainability objectives are fulfilled by guaranteeing the funds collected from the structured funding are
invested into property that fulfill the financial institution’s inner ESG Framework.
“The initiative rides on the financial institution’s technique and dedication to considerably improve its choices in inexperienced financing and funding choices by 2025,” it stated.
OCBC Financial institution managing director and head of shopper monetary providers Anne Leh stated the financial institution’s heightened emphasis on sustainability in latest occasions has brought about it to think about sustainability from extra angles than earlier than, the newest being via a FRNID.
“We’re creating extra merchandise that take ESG components into consideration, spurred on by the virtually RM5 billion in sustainable property below administration (AUM) we achieved on the finish of final 12 months.
“We imagine there may be much more that banks can do to drive the sustainability agenda and meet the rising wants and share of thoughts of consumers for low-risk funding merchandise like this, to not point out tapping into the huge array of alternatives on the market as we speak , she stated.
She added {that a} vital variety of clients have began to actively pursue ESG-based investments and the financial institution is dedicated to making sure the wants of these with conservative threat appetites are met via its principal-protected FRNIDs.
The CIC FRNID is appropriate for buyers on the lookout for a low-risk funding that’s 100 per cent principal-protected when held to maturity whereas looking for probably greater returns in comparison with fastened deposits. – Bernama