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PBIL joins hands with LixCap to boost sustainable cross-border financing

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  Published in Business and Finance on Sunday, October 26th 2025 at 12:19 GMT by The Daily Star
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PBIL and LIXCAP Forge Alliance to Propel Sustainable Cross‑Border Financing

In a landmark move aimed at bolstering sustainable development across Asia, Public Bank International Limited (PBIL) has entered into a partnership with LIXCAP, a leading green finance platform. The collaboration, announced at a press conference in Dhaka on Thursday, underscores a joint commitment to providing climate‑friendly financing solutions to businesses in the region, especially those engaged in renewable energy, energy efficiency, and other low‑carbon initiatives.

The Core of the Partnership

PBIL, a subsidiary of Malaysia’s Public Bank Group, brings a wealth of expertise in Islamic finance and a robust network of corporate and retail clients. LIXCAP, meanwhile, operates a digital marketplace that connects investors, lenders, and borrowers with a particular focus on sustainability. The alliance will leverage PBIL’s established banking infrastructure and LIXCAP’s technology‑driven platform to streamline the sourcing, structuring, and disbursement of green loans.

According to the joint statement, the two firms will jointly develop a portfolio of green loans that meet international sustainability standards such as the Green Loan Principles (GLP) and the Climate Bonds Initiative (CBI) criteria. The first tranche is expected to target projects in Bangladesh and neighbouring countries that aim to reduce carbon emissions, enhance energy efficiency, and improve resource management.

Why Sustainable Financing Matters

Sustainable financing has become a critical pillar of the global transition to a low‑carbon economy. In 2022, global green financing reached an all‑time high of $1.3 trillion, according to the Climate Bonds Initiative. The World Bank has repeatedly highlighted that private sector financing is essential to meet the ambitious targets set in the Paris Agreement. LIXCAP’s platform is designed to accelerate this flow by reducing information asymmetry, lowering transaction costs, and providing transparent risk assessments.

PBIL’s foray into green finance is part of its broader ESG strategy. In its most recent annual report, the bank noted that over 60 % of its total lending is now earmarked for sustainability‑aligned projects. By partnering with LIXCAP, PBIL hopes to further scale its impact and tap into a growing pool of institutional and retail investors who are increasingly prioritising ESG factors.

The Mechanics of the Collaboration

The partnership will involve several key components:

1. Joint Product Development
   PBIL and LIXCAP will co‑create green loan products that adhere to international standards, offering attractive terms for both borrowers and investors. These products will include financing for solar farms, biomass plants, and energy‑efficient building retrofits.

2. Digital Marketplace Integration
   LIXCAP’s platform will be integrated into PBIL’s online banking portal, enabling seamless application, approval, and monitoring of green loans. Borrowers will benefit from a single sign‑on experience and real‑time status updates.

3. Risk Assessment & Verification
   Leveraging LIXCAP’s built‑in risk analytics, both parties will perform rigorous due diligence to ensure that projects meet environmental impact thresholds. The platform’s blockchain‑based audit trail will provide transparency and facilitate third‑party verification.

4. Investor Access
   LIXCAP’s network of impact investors will gain direct access to PBIL’s borrower base, creating a pipeline for co‑financing and syndication. Investors can track the environmental outcomes of their investments through the platform’s dashboards.

5. Capacity Building & Knowledge Sharing
   The alliance will also include training modules for PBIL staff on green finance best practices and for borrowers on ESG reporting. Quarterly webinars will feature thought leaders in sustainable finance and renewable energy.

Expanding Reach Across Borders

A central feature of the partnership is its focus on cross‑border financing. The two firms will tap into a pool of projects that span Southeast Asia, Central Asia, and the Indian Ocean region. This approach is driven by the recognition that many developing economies lack sufficient domestic financing for large‑scale green infrastructure, yet possess abundant renewable resources.

PBIL’s existing branch network in Malaysia, Singapore, and the Philippines positions it well to source projects in Bangladesh, Sri Lanka, and Myanmar. LIXCAP’s digital marketplace, already operational in over 30 countries, will provide the necessary technology to connect these geographically dispersed markets.

Early Success Stories

During the announcement, PBIL highlighted a pilot project involving a 50‑MW solar farm in northern Bangladesh. The project, previously stalled due to financing gaps, is now slated to receive a green loan of $12 million, sourced jointly by PBIL and LIXCAP. The funding will cover land acquisition, solar panel procurement, and grid integration, with a projected 20 % reduction in CO₂ emissions per year.

Another case study involves a community‑based bioenergy plant in West Bengal, India, which aims to convert agricultural waste into electricity. The plant will be financed through a green bond, with PBIL acting as the underwriter and LIXCAP providing verification and investor outreach. The partnership’s success will be used as a template for scaling similar projects across the region.

Strategic Significance for PBIL

For PBIL, the alliance marks a strategic pivot towards sustainability‑led growth. The bank’s management has publicly stated that the next decade will be “crucial” for its ESG portfolio, and this partnership is a concrete step in that direction. By tapping into LIXCAP’s specialized platform, PBIL can offer innovative products that differentiate it from competitors, attract ESG‑conscious investors, and align its operations with global climate goals.

Moreover, the partnership provides a mechanism for PBIL to meet regulatory expectations. In 2023, the Bank of Malaysia released guidelines encouraging commercial banks to increase the proportion of green and sustainability‑aligned loans. PBIL’s collaboration with LIXCAP positions it to exceed these benchmarks while maintaining profitability.

The Broader Impact

The PBIL–LIXCAP partnership is part of a larger trend of financial institutions integrating sustainability into core business models. Across the globe, banks like Standard Chartered, HSBC, and DBS have launched green loan initiatives, while fintech platforms such as SunEdison and BNG Bank have focused on renewable energy projects. By joining forces, PBIL and LIXCAP add a robust player to the Asian market, potentially catalysing a wave of green financing that could unlock billions in investment for climate‑friendly projects.

The alliance also serves as a template for other banks and fintechs seeking to collaborate on ESG objectives. It demonstrates how traditional banking expertise can be combined with innovative technology to overcome financing bottlenecks and deliver measurable environmental outcomes.

Looking Ahead

The partnership will roll out its first green loan products in the next fiscal quarter, with a target of disbursing $50 million in green financing by the end of 2026. Both parties have committed to quarterly reviews of project performance and impact metrics, ensuring transparency and accountability.

For stakeholders in Bangladesh and beyond, the PBIL–LIXCAP collaboration offers a new avenue for accessing sustainable financing, thereby accelerating the adoption of renewable energy and energy‑efficient technologies. As the world grapples with climate change, such partnerships will be instrumental in bridging the gap between environmental ambition and financial reality.