AmBank funds RM408.2 mil for the Lahad Datu battery project
AmBank arranges RM408.2 million for the Lahad Datu battery project, among the first large storage financings by a Malaysian bank.
AmBank has arranged RM408.2 million in financing for the 100 MW / 400 MWh battery energy storage project in Lahad Datu, Sabah, developed by MSR Green Energy. The facility part-funds a project valued at about RM644.6 million, the same asset later inaugurated as the largest battery in the region by energy capacity.
The bank described the funding as support for the developer's working capital as it delivers the plant, which is offtaken by Sabah Electricity. AmBank did not disclose the tenure, and the financing covers part of the overall project cost rather than the full capital stack.
AmBank's Christopher Yap framed the deal as a step in supporting Malaysia's transition to a more sustainable energy future, while MSR Green Energy's Ong Kah Hui called the backing pivotal to addressing Sabah's power-supply needs. MSR Green Energy is a long-standing renewable developer with a portfolio spanning large-scale solar and feed-in-tariff projects.
The financing stands out because standalone battery storage is still a new project-finance category in Malaysia. A domestic bank underwriting a large storage asset signals growing lender appetite for bankable BESS projects, an important enabler as the country moves toward mandatory storage on new solar.
This is a UniBess summary of reporting by The Star. Read the original