BNM’s Low Carbon Transition Facility

BNM’s Low Carbon Transition Facility is established to support SMEs in adopting sustainable and low carbon practices.

A RM1 billion Facility established on a matching basis with participating financial institutions to help SMEs embrace sustainable and low carbon practices in their business operations. This includes increasing usage of sustainable raw materials and renewable energy, and to also improve the energy efficiency of buildings or machinery.

This Facility is in line with the Government’s target for Malaysia to be a net-zero emission economy by 2050.

The RM1 billion Facility is available from 3 February 2022 until full utilisation.

ObjectiveEncourage and support SMEs to adopt sustainable practices for business resilience
Special featureParticipating financial institutions to provide financing on a matching basis
SizeRM2 billion
[RM1 billion allocation from Bank Negara Malaysia + RM1 billion from participating financial institutions (matching basis)]
Eligibility criteriaSMEs in all sectors
Purpose of financingTo fund capital expenditure or working capital to initiate or facilitate the transition to low carbon and sustainable operation
TenureUp to 10 years
Financing size per SMEMaximum RM10 million
Financing rate to SMEsMaximum financing rate of 5.0% p.a., inclusive of guarantee fee (if any)
GuaranteeGuarantee schemes by Credit Guarantee Corporation Malaysia Berhad (CGC) / Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP)
Availability3 February 2022 until full utilisation

Read more details here.

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