The International Finance Corporation (IFC), a part of the World Bank Group has signed a Memorandum of Understanding with Cagamas Berhad, the National Mortgage Corporation of Malaysia, to promote increased green building finance in Malaysia and support the nation’s sustainable development objectives.

Supporting Climate-Smart Investments

This partnership assists financial institutions in promoting green investments in construction and housing by equipping them with the ability to craft sustainable finance solutions. These choices, green bonds, credit lines, and green cooling, assist Malaysia in creating a climate-friendly future while green housing becomes more feasible and available to many. The program also aims to assist financial institutions in developing a pipeline of attractive green projects as well as managing environmental, social, and climate-related risks efficiently.

Facilitating Financial Inclusion and Knowledge Exchange

An integral partnership element is building dialogue between the public and banking sectors to address impediments to sustainable housing growth. The project will also concentrate on promoting affordable and accessible green housing, especially for women and lower income groups. By developing a broader market for green mortgage products, the partnership is looking to bridge gaps in housing finance in Malaysia.

Also read: IFC Invests $100 Million in QNB Leasing to Support Sustainable Energy and Blue Finance

Driving Malaysia’s Net-Zero Ambitions

Green building finance scaling is a key step toward meeting Malaysia’s ambition of net-zero emissions by 2050. This collaboration provides thrilling prospects, introducing new financing solutions that promote sustainability while supporting Malaysia’s economy and future resilience.

Judith Green, Country Manager for the World Bank Group in Malaysia, said, “We are delighted to collaborate with Cagamas on this engagement, which will play a critical role in supporting not only the increasing need for green housing in Malaysia, but also the country’s inclusivity agenda”

He added,”Together, we aim to improve access to housing and reduce emissions, encouraging climate-smart investment in the building sector, and strengthen the financial sector’s capacity to support Malaysia in achieving its climate commitments under the Paris Agreement”

This program is IFC’s first in Malaysia’s green building market since it set up a presence in the country in 2023.

European Bank for Reconstruction and Development (EBRD) has signed a €45.75 million sovereign loan with Albania’s state energy distribution company, Operatori i Shpërndarjes së Energjisë Elektrike (OSHEE). The loan will allow OSHEE to restructure some of its short-term debt as well as free up funds for green investment to enhance Albania’s energy infrastructure.

Debt Restructuring and Green Investments

In late 2021, OSHEE borrowed €81.5 million in short-term commercial bank loans to cover imports of electricity with skyrocketing energy prices on the global market. The EBRD‘s newest financing will enable OSHEE to refinance part of the debt as a more sustainable long-term loan together with commercial banks. This refinancing will free up capital that OSHEE will invest in green projects essential for its modernization.

Under the deal, OSHEE has pledged to invest a maximum of €45 million over four years in enhancing its distribution grid. The upgrades will blend renewable energy, reduce power losses in the grid, and promote reliability, offering consumers a more efficient and stable supply.

Also read: EBRD Provides €50 Million to TEB Arval for Electric Vehicle Fleet Expansion

Technical Assistance and Employee Training

During his visit to Albania, EBRD Vice President Matteo Patrone signed the financing agreements, making them official. Signing the deal alongside him were Albania’s Minister of Finance and EBRD Governor, Petrit Malaj, and OSHEE Administrator, Enea Karakaci.

Minister Malaj stated that the transaction brought significant benefits, as refinancing OSHEE’s short-term loans into long-term loans from the EBRD would allow the company to repay the principal in manageable instalments over an extended period. He explained that this approach would create a smoother amortisation profile and lower the risk of future debt refinancing. Additionally, he highlighted that the new financing terms were more favourable, ultimately reducing the total cost of the loan.

Beyond financial restructuring, the project also includes technical assistance to enhance OSHEE’s workforce capabilities. OSHEE’s training academy will provide advanced training to employees, improving their skills in network planning and infrastructure investment for modernization.