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The Star
6 days ago
- Business
- The Star
Sabah's energy sector sees promising transformation under ECoS
KOTA KINABALU: Just over a year since assuming regulatory control, the Energy Commission of Sabah (ECoS) is beginning to see tangible progress in stabilising, reforming, and future-proofing the state's energy sector. ECoS chief executive officer Datuk Abdul Nasser Abdul Wahid ( pic ) highlighted that Sabah's energy landscape, once plagued by supply instability and limited rural access, is now moving towards a more resilient and inclusive system. "When we came in, the priority was to stabilise the grid. We had to put the house in order before we could talk about transformation," Nasser shared in an interview with Niaga Spotlight. The turnaround began with urgent interim measures: leasing 200MW of diesel and gas generation capacity, and deploying 100MW of battery energy storage systems (BESS). These initiatives were crucial in preventing outages and restoring confidence. Sabah is now on track to achieve a 25% reserve margin by the third quarter of 2025, with plans to phase out diesel systems and replace them with permanent gas plants by 2026–2027. "Electrification of remote areas is another area where progress is accelerating. With 96% rural electrification already achieved, ECoS is collaborating with federal and state agencies, including the Ministry of Rural and Regional Development (KKDW), UPEN Sabah, Sabah Electricity Sdn Bhd (SESB), and JELaS, to reach full access by 2030," he said. Nasser emphasised that innovative off-grid solutions powered by renewables and supported by local communities will be key. 'Electricity is not a luxury. It is a right. We want communities, especially those long left behind, to be part of this journey,' he explained in a statement on Wednesday (June 25). Under the Sabah Energy Roadmap and Master Plan 2040 (SE-RAMP 2040), Sabah aims to achieve 40% renewable energy by 2030 and 80% by 2050. So far, 600MW of renewable capacity, mostly hydropower, has been approved, with a total target of 2,000MW by 2040. 'These projects create jobs, build skills, and unlock business opportunities, especially for youth and indigenous communities,' he said, stressing that this green transition must benefit everyone. Major developments like the Upper Padas Hydropower Project will be guided by strict environmental and social safeguards, with early stakeholder engagement, environmental protection, and fair compensation at the core. Sabah's abundant bioenergy potential, estimated at over 800MW, is being positioned as a new growth area. ECoS is working on policies that cap biomass exports, encourage methane capture, and support Government Linked Companies-led aggregation, while introducing premium tariffs for green electricity. 'Bioenergy is a hidden gem for Sabah. It's sustainable, scalable, and it creates rural income,' Nasser noted. While ramping up renewables, ECoS remains clear-eyed about energy security. Natural gas will continue to serve as a key transition fuel, bridging the shift to a greener grid. Sabah's strategy supports both the National Energy Transition Roadmap (NETR) and SE-RAMP 2040, ensuring national alignment with local priorities. Through the TVET Angkat ECoS programme, the agency is investing in vocational training, aligning curricula with industry needs, and equipping local youth to participate in, and benefit from, the energy transition. 'We don't just want to build infrastructure. We want to build people,' said Nasser. Looking ahead, Sabah is poised to become a regional energy hub. The long-planned Sabah-Sarawak grid interconnection, expected to be completed by the end of 2025, will enable cross-border electricity trade and support ASEAN energy integration. 'Our goal is to make Sabah a model of a just and sustainable energy transition,' Nasser said.
Business Standard
20-06-2025
- Business
- Business Standard
Tamilnad Mercantile Bank trims lending rate by 50 bps; RLLR now at 8.50%
Tamilnad Mercantile Bank announced a 50 basis points (bps) reduction in its Repo Linked Lending Rate (RLLR), bringing it down from 9.00% to 8.50%, in line with the Reserve Bank of India's latest repo rate cut. The new rates, effective from 20 June 2025, will reduce EMIs or loan tenures for borrowers, offering major relief to home and personal loan customers. The Reserve Bank of India (RBI) recently cut the repo rate by 50 basis points (0.50%), reducing it from 6% to 5.50%. Its effect is now slowly showing on the banks. Following other major banks, Tamilnad Mercantile Bank has now reduced its Repo Linked Lending Rate (RLLR) from 9.00% to 8.50%. Tamilnad Mercantile Bank (TMB) is one of the renowned old private sector banks, having its headquarters in Thoothukudi (Tamil Nadu). The bank has opened 26 new branches during the year FY 24-25. The banks net profit rose 15.35% to Rs 291.90 crore on 8.78% increase in total income to Rs 1,542.06 crore in Q4 March 2025 over Q4 March 2024. Shares of Tamilnad Mercantile Bank rose 0.21% to Rs 444.50 on the BSE.
Business Recorder
20-06-2025
- Business
- Business Recorder
Punjab budget: $428.54m foreign-funded uplift projects included
LAHORE: Foreign-funded development projects of USD 428.54 million have been included in Punjab budget for FY 2025-26. These projects focused on improving water supply & sanitation, urban development, environment, irrigation, agriculture, physical infrastructure, health, education, skills development and IT & governance. As per budget document, foreign engagement in Punjab's development financing primarily takes two forms: project-based loans and grants (Foreign Project Assistance) and programme-based loans (budgetary support). Loans obtained from multilateral donor agencies through the Federal government for specific foreign-assisted development projects are termed as Foreign Project Assistance. Programme loans, on the other hand, provide direct budgetary support, linked with indicators and results, named Disbursement Linked Indicators and Result Based Lending. The Punjab government, in line with its policy parameters on foreign borrowing, is guided by a preference for concessional financing and longer maturities, ensuring long-term fiscal sustainability. World Bank-funded projects are: Punjab Clean Air Programme, Getting Results: Action, Delivery of Quality Education Services; Punjab Rural Sustainable Water Supply & Sanitation Project (PRSWSSP); Punjab Resilient and Inclusive Agriculture Transformation Project (PRIAT); Punjab Urban Land Systems Enhancement (PULSE) Project; Punjab Human Capital Investment Project; Punjab Resource Improvement and Digital Effectiveness; Punjab Family Planning Programme (PFPP); Punjab Affordable Housing Programme (PAHP); National Health Support Programme; Punjab Tourism for Economic Growth Project (PTEGP); Punjab Cities Programme and Punjab Green Development Programme (PGDP). The ADB-funded projects included: Construction of Jalalpur Irrigation Project; Punjab Intermediate Cities Improvement Investment Programme; Project Readiness Financing (PRF) for Punjab Water Resources Management; Project Readiness Financing for Punjab Urban Development Projects; Improving Workforce Readiness in Punjab Project; Developing Resilient Environment and Advancing Municipal Services (DREAMS) in Punjab; Responsive Ready and Resilient STEM Secondary Education in Punjab. Copyright Business Recorder, 2025
Mint
13-06-2025
- Business
- Mint
Canara Bank cuts RLLR to 8.25%, making loans cheaper from June 12
In a move to boost borrower confidence, Canara Bank has reduced its Repo Linked Lending Rate (RLLR) from 8.75% to 8.25%, effective from June 12, 2025. This comes in response to the recent 50 basis point reduction by the Reserve Bank of India (RBI), bringing it down to 5.5%. Therefore, by passing on the complete benefit to the loan aspiring applicants, Canara Bank has made loans cheaper across its entire portfolio. Due to this move, interest rates on popular retail loans have been slashed. Home loans now start at 7.40% per annum, down from 7.90% whereas vehicle loans begin at 7.70% reduced from 8.20%. These lowered rates are expected to significantly reduce the EMIs on both existing and new borrowers. Thus making home and vehicle ownership more affordable and accessible for aspirational borrowers. Furthermore, as the RLLR is directly linked to the repo rate cut by RBI, any monetary policy changes or adjustments are quickly reflected in the financial institutions lending rates. This ensures transparency, clarity and prompt relief for borrowers. Not only this, Canara Bank has also trimmed its Marginal Cost of Funds Based Lending Rate (MCLR) by a total of 20 basis points across all tenures. This will benefit borrowers with older loans linked to MCLR. This move follows a broader trend by banks and financial institutions cutting lending rates after the RBI's policy action. All these steps cumulatively are aimed at stimulating demand in the credit market. For Canara Bank the rate cut aligns with its strategy to support economic growth, boost investment and financial inclusion by enhancing the availability of credit. Now with reduced rates across the board Canara Bank is encouraging individuals and businesses to check out their new loan products or even consider refinancing the existing ones. These steps are expected to provide timely financial relief and boost credit activity in the automobile and housing sector of the country. Disclaimer: Loan rates and terms may vary and are subject to change by Canara Bank. Reach out to the official website of the bank and verify details. This is for informational purposes only.
Forbes
25-04-2025
- Business
- Forbes
Amid Market Chaos, Downside Protection Securities Beloved By Brokers Are Booming
Talk to any financial advisor these days, and he or she is likely to have a strong opinion about something known as 'structured notes.' These complex products are sold as the 'have your cake and eat it' investments of the wealth management world. Their specialty is flexibility –some are geared toward growth and others toward income. Returns are generally capped and in all cases the goal is to limit downside risk. They are manufactured by big banks like JPMorgan using derivatives, and are often sold as 'stock market-linked' with 'sleep well at night' protection. They come with various maturities, typically ranging from six months to five years, provide principal protection and sometimes offer annual yields of 10% or more. Up until the last few years, structured notes were mostly the domain of hedge funds and other sophisticated investors or ultra-wealthy clients. But thanks to clever engineering, the notes are now being offered by scores of brokers and sold in bite-sized $1000 increments. The current market volatility and uncertainty has caused them to surge in popularity. Last year the broker-sold US structured notes market reached a record high of nearly $150 billion, up 46% from the previous year, according to London's Deriva Intelligence. JPMorgan was the top issuer in 2024, followed closely by the likes of Citi, Goldman Sachs, Morgan Stanley and Barclays. 'I absolutely love structured notes,' says Ahn Tran, an independent advisor at $350 million (assets) SageMint Wealth in Irvine, California. Structured notes make up about 30% of the allocation in most of Tran's client portfolios. 'I've never had so many calls from advisors reaching out asking if we can talk to them about how we run our portfolios,' says Tran. 'Clients are using structured notes not because they're 'hot,' but because they allow you to take more control of the outcome,' insists Michaelangelo Dooley, Structured Note Strategies Portfolio Manager at $30 billion investment advisory NewEdge. Dooley is referring to the fact that these securities can be tailor made to meet the demand created by specific market environments. A few years ago when rates were low, for example, stock market notes offering income of 10-12% were popular. 'Each [note] is entirely different with the risk that it takes on. Even within the same category—like contingent yield notes—two products might have similar structures but vastly different outcomes based on the underlying assets.' One could be tied to the S&P 500, another to Tesla or Nvidia stock, Dooley notes, adding: 'They are not comparable trades.' Take Bank of Montreal's freshly issued Senior Medium Term Notes, Series K ,Market Linked Notes due April 2028. The notes, which are one of the first products to roll off of a $78 billion shelf registration, bear no interest and are designed to track the performance of the tech-heavy Nasdaq 100 Index, which is down 11% year to date. The maximum gain noteholders are entitled to is 22.8%. Thus, if in three years, when the notes are due, the Nasdaq100 is up 35% from its level on April 25, 2025, investors will only be entitled to $1,228.00 for each $1000 par amount note. However if tech stocks continue to fall and the Nasdaq 100 is down 35%, the BMO structured note holders get their original $1,000 returned. Another type of structured note is known as a 'buffered' note. These, which typically track and index like WHAT, allow for a cushion—say, 20% or 30%—against losses. If the asset declines 15%, the investor's principal is preserved. If it drops 35%, the first 30% is protected and the investor takes only the final 5% loss. Contingent income notes offer periodic income—say, 9% annually—as long as the underlying asset or index doesn't fall below a preset barrier. They are often 'autocallable,' meaning they redeem early if the reference asset hits a high price target price. If markets are stable or rising, this feature can allow for quick realization of gains and capital return. But when markets stay choppy—like they have been in 2025—the notes may linger to maturity, still paying income but testing investor patience. Contingent barrier notes, meanwhile, act like a trapdoor. If the index stays above a set barrier—commonly 60-75% of its initial value—the investor gets their principal back, possibly with a coupon. But if the barrier is breached, protection vanishes, and the note's return moves in tandem with the underlying asset, meaning that the client assumes a 1:1 loss. According to Andrew Kuefler, SVP of Product Strategy at alternative investments marketplace iCapital, the current volatility has made these autocallable contingent income notes especially attractive. 'When uncertainty spikes, these products offer yields in the 7–10% range with 30–45% downside protection,' he says. 'Advisors are using them to harvest volatility and generate income without taking full equity risk.' Following market events like Trump's tariff announcement, Kuefler noted quote requests surged by 140% week-over-week—clear evidence of rising advisor interest. These novel securities are not without their costs. Bank of Montreal charges advisory firms a 2.5% commission for creating the notes. Then financial advisors likewise, get their cut from clients after that. Unlike ETFs of mutual funds, these notes also have limited liquidity and even under the best case scenario, an investor would likely do just as well by investing in a high yield corporate bond fund, which is inherently less risky and less complex. Vanguard's High Yield Bond Fund, with its expense ratio of 0.22%, is currently yielding 7%, about the same annual return you would achieve under the best case scenario with the BMO's new Nasdaq100-Linked structured notes. Greenwich Connecticut's AQR Research is a big critic of structured notes like BMO's, as well as similarly structured funds and ETFs that are sold as 'Define Outcome' or 'Buffer' Funds. In March, an AQR issued research saying it would be smarter and cheaper for investors to simply their exposure from 100% stocks, to say 70% with 30% in Treasury bills, than to invest in one of these options-fueled funds. 'These 'buffer funds' are a marketing success, a success for the managers selling them, and a failure for investors lured in by the overpromise of magical equity returns without equity risk and then overcharged for the pleasure,' says Daniel Villalon, Global co-head of portfolio solutions at AQR. Like their broker-sold cousins 'buffer ETFs' have soared in popularity recently. According to Morningstar, assets ballooning to $58 billion up from their inception in 2018. One of the most popular is Defined Wealth Shield ETF, from Wheaton, Illinois' Innovator Funds. The $1.4 billion (assets) fund whose symbol BALT, stands for 'bond alternative' and like other buffer ETFs, is designed to allow for some market gain participation but limit losses. BALT allows investors to participate in S&P 500 gains capped at 2.47% each quarter, but protects them from any losses up to 20% on the downside during the same quarter. During 2024's roaring 23% run in the S&P 500, BALT owners would have earned just under 10%. Year-to-date, with the S&P down 9% BALT is off only 1%. Critics of structured investment vehicles argue that the complexity masks inefficiencies and cost. They also warn that their perceived safety evaporates during black swan type economic events-– like a global recession. Structure notes are unsecured obligations and are thus, only as sound as the financial institutions issuing them. During the financial crisis, investors lost nearly all of their principal in the more than $18 billion in structured notes issued by Lehman Brothers. 'Banks and advisors make a ton of money on them,' says one Morgan Stanley advisor who asked to remain anonymous. 'But in worst-case scenarios like 2008, they were the worst thing to hold.
