KUALA LUMPUR: Dialog Group Bhd's joint venture firm Dialog Diyou PCR Sdn Bhd has embarked on the group's inaugural sustainable financing venture via a green project financing facility.
OCBC Bank (Malaysia) Bhd is the structuring adviser and lender for the green financing, which was structured in compliance with the
Loan Market Association’s Green Loan Principles (GLP).
Dialog Diyou is a joint venture between Dialog and Diyou Fibre (M) Sdn Bhd, an established recycling and manufacturing company based in Nilai, Negeri Sembilan, with over 30 years of experience in the industry.
In a joint statement, Dialog and OCBC said proceeds from the green financing will be utilised to part-finance the development of a food grade recycled polyethylene terephthalate (PET) pellets production facility.
It said the raw materials for the facility will be sourced entirely from recycled plastics, rendering the project eligible under the pollution prevention and control and circular economy adapted products, production technologies and processes categories under the GLP.,
The project is also aligned with the UN Sustainable Development Goals #11 (Sustainable Cities and Communities) and #12 (Responsible Consumption and Production), it added.
The successful close of the green financing coincides with the inclusion of Dialog into Bursa Malaysia's FTSE4Good Bursa Malaysia Index.
“The food grade recycled PET project will strengthen Dialog’s investment into sustainable and renewables business and is a continuation of Dialog’s initiatives to achieve business sustainability and fulfil its ESG agenda through commercially viable ventures.
"We are delighted to have partnered OCBC Bank as one of our key relationship banks to emplace this inaugural green project financing for Dialog’s first recycling project,” said Dialog executive deputy chairman Chan Yew Kai.
Meanwhile, OCBC managing director, senior banker and head of investment banking Tan Ai Chin said the bank has been a prime mover of the initiative, having entered into a memorandum of understanding with Bursa Malaysia in November 2021 to establish #financing4ESG as part of its continue contribution to further the sustainability agenda.
"We view the implementation of sustainable finance as an overwhelmingly positive sign that the corporate sector is aligned to our government’s commitment towards achieving carbon neutrality by 2050,” she added.