KUALA LUMPUR (Oct 26): Malayan Banking Bhd (KL:MAYBANK) has joined Singapore's DBS Bank and the World Bank Group's International Finance Corporation (IFC) to develop a financing framework for the US$6 billion (RM25 billion) Southern Johor Renewable Energy Corridor (SJREC).
The three financial institutions exchanged a memorandum with project developer Ditrolic Energy Holdings Sdn Bhd at the Singapore International Energy Week on Monday.
The memorandum establishes a working group to address key requirements for the project's bankability, including regulatory approvals, grid interconnection, electricity offtake, risk allocation and financing structure.
SJREC, jointly developed by Ditrolic Energy and Johor state investment arm Permodalan Darul Ta'zim, comprises solar generation and battery storage facilities aimed at supplying renewable electricity to Malaysia and Singapore.
In August, Ditrolic's wholly owned Singaporean unit Southern Solar Alliance Pte Ltd secured conditional approval from Singapore's Energy Market Authority to import up to 600MW of renewable electricity from Johor.
Maybank group chief executive officer of global banking Datuk John Chong said SJREC has "the potential to connect Johor’s renewable energy resources with businesses in Malaysia and Singapore, supporting decarbonisation and strengthening the Johor-Singapore Special Economic Zone’s appeal as an investment destination".
"With our presence in both markets, Maybank is well positioned to support this cross-border initiative through our regional financing capabilities," Chong said.
Ditrolic group CEO Tham Chee Aun said close to 90% of the project's green energy capacity had already attracted booking interest, with the focus now on progressing towards financial close.
The project is currently advancing towards contracting, licensing, permitting and a final investment decision.