Boustead Plantations Bhd (BPB) has secured a RM45 million green financing agreement with the China Construction Bank (M) Bhd (CCBM) to develop its sustainable replanting exercise.
According to a statement from the palm oil company, they seek to leverage the financing to maximise its ongoing accelerated sustainable replanting programme, particularly for its plantation assets in Sabah, until 2024.
BPB’s CEO Zainal Abidin Shariff commented that this contract is in line with its long-standing sustainability stance as its always on the lookout for collaborative financing exercise in the financial and debt market that emphasises on the principles of environmental, social and governance.
“BPB has demonstrated a positive track record on its adherence towards sustainability practices, with 100% of its land area has been certified with Malaysian Sustainable Palm Oil while six of its Roundtable on Sustainable Palm Oil certified palm mills are accredited with the Supply Chain Certification System.”
“The green financing agreement would allow BPB to complement its ongoing plantations performance improvement programme by optimising the potential of its plantation assets in Sabah.”
CEO of CCBM Wang QiJie added that the signing was a significant milestone for CCBM as it will be the bank’s first Green Plantation Financing in Malaysia. “CCBM would like to see a continuation of the bank’s joint efforts to build a long-term and strategic partnership with BPB.”
CCBM is a subsidiary of China Construction Bank Corp (CCB), a leading large-scale commercial bank headquartered in Beijing with a presence in 31 countries globally. Together with China Construction Bank Corporate Labuan branch, it is committed to supporting Malaysia’s green and sustainable development, technology, and digital advancements in achieving the country’s economic empowerment.