KUALA LUMPUR (July 14): Malayan Banking Bhd (KL:MAYBANK) is extending a US$150 million (RM638.18 million) sustainability-linked loan (SLL) to Austria Technologie & Systemtechnik Malaysia (AT&S Malaysia), which the bank said is the first such SLL loan by a Malaysian and Southeast Asian lender to AT&S, and notably, the first such facility by a local lender to a multinational company in Malaysia's burgeoning semiconductor sector.

The funds are to be used by AT&S Malaysia for its high-end integrated circuit (IC) substrate plant in Kulim Hi-Tech Park, Kedah, according to Maybank and AT&S Malaysia in a joint statement on Monday (July 14).

AT&S Malaysia is a subsidiary of Austria Technologie & Systemtechnik Aktiengesellschaft (AT&S), a Vienna-listed global leader in high-end printed circuit boards (PCB) and integrated circuit (IC) substrates.

The facility, representing AT&S Group's largest initial investment globally with over US$1 billion committed to Malaysia, will feature state-of-the-art equipment and closed-loop recycling systems, aligning with AT&S’ comprehensive sustainable energy framework.

It is set to produce advanced IC substrates, crucial components for meeting the escalating demand for high-performance data processors, data centres and AI infrastructure, with clients including AMD for data centre processors.

A key aspect of the SLL is its direct tie to environmental targets, including for AT&S Malaysia to reduce annual greenhouse gas emissions by 31% by March 31, 2028, using fiscal year 2022 as the baseline.

“We are pleased to back AT&S in developing its first IC substrate facility in Kulim that further strengthens Malaysia’s role in the global semiconductor value chain. The financing aligns with our strategic focus on the semiconductor ecosystem in Southeast Asia where we have identified financing opportunities,” said Maybank's group chief executive officer of global banking Datuk John Chong.

"The SLL structure also strengthens our commitment to mobilising sustainable finance and powering the region’s green transition. This transaction is also a reaffirmation of our growing collaboration with the IFC," Chong added.

From 2021 through the first quarter of 2025, Maybank has mobilised RM125.46 billion in sustainable financing across Asean, surpassing its RM80 billion target set for 2025.

“For AT&S, the new facility is an important foundation for our profitable growth path based on superior technology, experience and our global leading customers,” said Michael Mertin, president and CEO of AT&S.

At the time of writing on Monday, Maybank shares were trading three sen or 0.3% higher at RM9.72, valuing Malaysia’s largest bank by assets at RM117.43 billion. The stock has slipped 4.5% year to date.