OCBC Bank (Malaysia) Berhad has launched its maiden principal-protected interest rate-linked floating rate negotiable instrument of deposits (FRNID) that incorporates environmental, social, and governance (ESG) elements.
The Callable Interest Cumulation Floating Rate Negotiable Instruments of Deposit (CIC FRNID) is an ESG investment that allows customers to earn a potentially higher return than a fixed deposit, by taking a view on KLIBOR rates. The sustainability goals are fulfilled by ensuring the funds collected from the structured investment are invested into assets that fulfil the Bank’s internal ESG Framework. The initiative rides on the Bank’s strategy and commitment to significantly increase its offerings in green financing and investment options by 2025
According to OCBC Bank Managing Director & Head of Consumer Financial Services Ms. Anne Leh, the Bank’s heightened emphasis on sustainability in recent times has caused it to consider sustainability from more angles than before, the latest being through a FRNID.
“We are creating more products that take ESG factors into consideration, spurred on by the almost RM5 billion in sustainable assets under management (AUM) we achieved at the end of last year. “Green financing and investments offer the opportunity to do well by doing good.
She added that a significant number of customers have started to actively pursue ESG-based investments and the Bank is committed to ensuring the needs of those with conservative risk appetites are met through its principal-protected FRNIDs.
The CIC FRNID is suitable for investors looking for a low-risk investment that is 100% principal-protected when held to maturity while seeking potentially higher returns compared to fixed deposits.
