RM815m green loans approved

KUALA LUMPUR: MORE than RM800 million worth of green loans have been approved by banks and, of that figure, RM250 million has already been disbursed, says Energy, Green Technology and Water Minister Datuk Peter Chin Fah Kui. 

"After a series of dialogue with Bank Negara and my agencies, bankers are becoming more familiar and comfortable about funding green businesses," he said. "Banks are approving green loans a lot faster, from over a year to two months," he added.

Chin said the recently-announced 2013 Budget has raised the target of the Green Technology Financing Scheme by another RM2 billion to RM3.5 billion. 

"The implementation deadline has also been extended until the end of 2015," he said.

The Green Technology Financing Scheme, established two years ago, seeks to encourage supply and usage of green technologies. 

The scheme benefits companies which are producers (up to RM50 million for 15 years) and users (up to RM10 million for 10 years) of green technologies.

Under the scheme, the government bears 2 per cent of the total interest/profit rate and guarantee 60 per cent of the green loan via Credit Guarantee Corporation Malaysia Bhd, with the remaining 40 per cent financing risk borne by banks.

The minister was speaking to reporters at the media sneak preview of the International Greentech and Eco Products Exhibition and Conference Malaysia (iGEM) 2012 here yesterday. The iGEM 2012 will be held on October 10 and 11 at the Kuala Lumpur Convention Centre.

Also present at the event was Malaysian Green Technology Corp acting chief executive officer Ahmad Zairin Ismail. He said 20 banks have approved green loans amounting to RM815 million to 67 projects ranging from renewable energy, industrial waste water recycling and production of bio-plastics.

"Out of the 67, eight projects are related to the oil palm industry where palm oil millers put up biomass and biogas plants to generate renewable energy," he added.