Maybank has made a significant stride in sustainable finance by becoming the first commercial bank in Southeast Asia to grant a Sustainability-Linked Loan (SLL) to Austria Technologie & Systemtechnik Malaysia (AT&S Malaysia), a subsidiary of Austria’s AT&S Group.
The USD150 million facility not only underscores Maybank’s commitment to supporting the region’s green transition but also marks a pivotal moment in Malaysia’s semiconductor landscape. This loan is the first of its kind from a Malaysian and Southeast Asian lender to AT&S and is notably the first SLL extended by a local financial institution to a multinational company operating within Malaysia’s semiconductor sector.
This landmark transaction comes in the wake of a USD250 million loan secured by AT&S Malaysia from the International Finance Corporation (IFC) in March 2025.
The current deal with Maybank concludes the parallel loan facility arranged by IFC under the same agreement. The financing will directly support the development of AT&S’ first high-end integrated circuit (IC) substrate manufacturing plant located in the Kulim Hi-Tech Park, Malaysia.
AT&S Malaysia is a subsidiary of Austria Technologie & Systemtechnik Aktiengesellschaft, a publicly listed company headquartered in Vienna. The parent company is a global leader in the production of high-end printed circuit boards (PCBs) and IC substrates.
The new facility in Kulim will be equipped with cutting-edge technologies and a closed-loop recycling system, fully aligned with AT&S’ sustainability strategy. It will manufacture advanced IC substrates, critical components required to meet the growing global demand for high-performance data processors, data centers, and artificial intelligence infrastructure. Among its key clients is semiconductor giant AMD, which uses AT&S products in data center processors.
With over USD1 billion invested in Malaysia, the Kulim facility represents AT&S Group’s largest initial investment to date. The company has committed to key environmental performance targets tied to the loan, including a 31% reduction in annual greenhouse gas emissions by March 31, 2028, using the 2022 fiscal year as the baseline.
Maybank’s role in the transaction reflects its broader regional strategy and growing leadership in sustainable finance.
Group Chief Executive Officer Global Banking of Maybank, Dato’ John Chong stated that they are pleased to back AT&S in developing its first IC substrate facility in Kulim that further strengthens Malaysia’s role in the global semiconductor value chain.
The financing aligns with their strategic focus on the semiconductor ecosystem in Southeast Asia where we have identified financing opportunities.
The SLL structure also strengthens our commitment to mobilising sustainable finance and powering the region’s green transition. This transaction is also a reaffirmation of their growing collaboration with the International Finance Corporation.
Maybank’s sustainable finance efforts have already exceeded internal targets. Between 2021 and the end of Q1 2025, the bank mobilised RM125.46 billion in sustainable finance across ASEAN, surpassing its original RM80 billion target set for 2025.
Chief Financial Officer of AT&S, Petra Preining, welcomed the agreement and acknowledged its significance.
“We welcome Maybank as a valued financing partner in our investment in the Kulim facility. This transaction is a milestone for both Maybank and AT&S as it represents the first time AT&S has raised financing at its Malaysian subsidiary level, she said.
At the same time, President and CEO of AT&S, Michael Mertin emphasized the strategic importance of Malaysian investment.
“Our sizable investment of over USD1 billion in Malaysia follows the demand from our global clients, and reflects our confidence in Malaysia’s semiconductor ecosystem and its growth trajectory.
It also aligns with the ambitions of Malaysia’s National Semiconductor Strategy and the New Industrial Master Plan 2030 to position the country as a leading hub for advanced manufacturing.
For AT&S the new facility is an important foundation for our profitable growth path based on superior technology, experience and our global leading customers,” he added.
Globally, AT&S is ranked sixth in the high-end PCB market and fifth in the IC substrates market by revenue. It is also the only non-Asian company producing IC substrates in substantial volumes and one of only two non-Asian firms among the world’s top 50 PCB producers.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
