OCBC Bank launches sustainability-linked floating rate negotiable instruments of deposits

OCBC Bank Bhd has launched its maiden Sustainability-linked Floating Rate Negotiable Instruments of Deposits (FRNID) that incorporates environmental, social and governance (ESG) elements. The Callable Interest Cumulation Floating Rate Negotiable Instruments of Deposit (CIC FRNID) is an ESG investment that allows customers to earn a potentially higher return than a fixed deposit, by taking a view on KLIBOR rates said OCBC Bank in a statement.

"The sustainability goals are fulfilled by ensuring the funds collected from the structured investment are invested into assets that fulfil the bank’s internal ESG Framework. The initiative rides on the bank’s strategy and commitment to significantly increase its offerings in green financing and investment options by 2025,” it said.

OCBC Bank managing director and head of consumer financial services Anne Leh said the bank’s heightened emphasis on sustainability in recent times has caused it to consider sustainability from more angles than before, the latest being through a FRNID.