PFEM, a wholly owned subsidiary of FENC, has secured a RM150 million green and sustainability-linked loan from HSBC Malaysia. For the first time, FENC applied its sustainable financing framework to an overseas subsidiary for plant construction and operation, a monumental moment in the Company’s sustainable finance and industry investment. The funds will be applied towards the construction of a new plant, while the interest rate will be linked to sustainability performance indicators, such as the percentage of renewable power in the energy mix and water recycling rate, boasting financial support and environmental benefits.

The new high-tech rPET plant is located in Melaka with a planned annual capacity of 50,000 metric tons of food-grade rPET made of locally recycled PET bottles. The high-quality rPET will be utilized by international brands, forming a bottle-to-bottle circular economy and reducing carbon emissions. Advanced technologies such as automatic sorting, cleaning and granulation allow PFEM to be in full compliance with international food safety standards. Its location, which is close to major ports and infrastructure, is an advantage that positions the plant as the driver of regional economy as well as green and low-carbon transition in Malaysia.