AMMB provides RM450m financing to E&O’s Andaman Island project in Penang

• Every building on Andaman Island has been designed to meet Green Building Certification standards, the statement read, and E&O is working closely with its architects and builders to minimise the use of new raw materials.

KUALA LUMPUR (Oct 18): AMMB Holdings Bhd has provided a RM450 million financing facility to Eastern & Oriental Bhd’s (E&O) unit to fund the development of the Andaman Island project in Penang.

“As part of the bank’s aim to achieve significant volume in financing this financial year, the bank is now on track currently, with total disbursement of RM1.3 billion, following its support in key projects such as Andaman Island,” said AMMB in a joint statement with E&O’s wholly-owned unit Tanjung Pinang Development Sdn Bhd.

Since its first project — The Meg — in December 2021, Tanjung Pinang has launched more than 1,400 units, and another 330 units are expected to be launched next year.

Every building on Andaman Island has been designed to meet Green Building Certification standards, the statement read, and E&O is working closely with its architects and builders to minimise the use of new raw materials. Building materials have also been carefully selected to lower Andaman Island’s carbon footprint, and improve the lifecycle of the materials used, the statement added.

AMMB group chief executive officer Datuk Sulaiman Mohd Tahir said this partnership sets a landmark, as the banking group works with Tanjung Pinang to reduce the environmental impact, and promote a more sustainable future.

“We understand that financial institutions play a vital role in channelling capital towards environmentally sustainable projects, while encouraging the transition to a greener economy. We are proud to be part of a growing movement with Tanjung Pinang Development in its initiative towards a sustainable and resilient economy,” he said.

“It also complements our long-standing collaboration with the E&O group, a renowned leader in the development of sustainable and environmentally conscious residential projects in Malaysia. Its exceptional track record in creating green communities aligns perfectly with our commitment to fostering a sustainable future.

“AmBank Group is confident in our partnership's ability to drive positive change, and provide financing solutions that will empower the E&O group to continue its outstanding work in sustainable real estate development,” he added.

AMMB managing director of business banking Christopher Yap said the group hopes to continue expanding opportunities in the coming years, and work together with clients who share a common goal in building a greener economy.

“At AmBank Group, we take immense pride in supporting visionary green initiatives with financing, and we look forward to continued success together in shaping a more sustainable future,” he said.

E&O executive chairman Datuk Tee Eng Ho said with AMMB’s support, the group can realise its vision for Phase 1 of Andaman Island, which his expects to have a gross development value of over RM17 billion over a development period of 15 years.

“The entire project is crafted around a unique mixed development concept that prioritises sustainable living, excellent connectivity and community building. That said, we are committed to developing a sustainable development and living,” he said.

“Our work has been recognised with the attainment of the GreenRe Platinum Provisional Certification for Phase 1 of the Andaman Island township development project under the township category, being the first in Malaysia.

“E&O will strive to launch new developments progressively across Andaman Island, each meticulously designed to offer the perfect balance between a peaceful island life and an exciting urban lifestyle by integrating green living and community building as the heart of the entire design,” he added.

Shares in AMMB closed four sen or 1% lower at RM3.81 on Wednesday, giving it a market capitalisation of RM12.63 billion.

E&O, meanwhile, closed 2.5 sen or 4% lower at 59.5 sen, valuing the group at RM1.10 billion.

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