KUALA LUMPUR (Aug 21): United Overseas Bank (Malaysia) Bhd (UOB Malaysia) is supporting FMM House Sdn Bhd’s RM3 billion Asean green medium-term notes (MTN) programme, a landmark initiative to advance sustainable development for logistics infrastructure in Malaysia.

UOB Malaysia is the principal adviser, lead arranger, lead manager and facility agent for the programme, under which FMM will be issuing notes in tranches. The first tranche will involve an issuance of up to RM630 million with a 15-year tenor to fund three logistics hubs in Pulau Indah, Klang, Selangor.

This marks UOB Malaysia’s second involvement in green logistics hubs in Selangor, following its earlier support for Global Vision Logistics, Malaysia’s first green-certified logistics hub and one of the largest in Asean.

"These initiatives build on UOB Malaysia’s continued efforts to innovate and develop impactful solutions that help clients decarbonise. Through our Sustainable Finance Framework, we remain focused on enabling businesses to adopt responsible practices and transition toward low-carbon, future-ready infrastructure,” said UOB Malaysia chief executive officer Ng Wei Wei in a statement Thursday.

Established in 2022, FMM House focuses on industrial property development, particularly projects that incorporates automation and green technologies. Its Asean Green MTN Framework has received a Gold Sustainable Finance Rating from RAM Sustainability.

FMM House’s logistics development in Pulau Indah will feature automated warehouse storage systems, with a combined gross floor area of approximately 1.67 million square feet and a storage capacity of around 218,000 pallets. Featuring automated warehouse storage systems, ambient and cold room facilities, the development will be fully operated by Storio Sdn Bhd, a specialist in smart warehousing and logistics solutions.

The project has obtained pre-certified Gold status under the Leadership in Energy and Environmental Design or LEED standard by the US Green Building Council.

FMM House director Tan Sri Teo Chiang Hong described the programme as a milestone towards developing sustainable and automated logistics infrastructure. “With UOB Malaysia’s support, we are confident in delivering high-impact developments that meet global green standards and drive long-term value for our stakeholders,” Teo said.