SEARCH

CIMB allocates RM3b for sustainability-linked loans

05 Jan 2020 / 18:48 H.

PETALING JAYA: CIMB Bank Bhd and CIMB Islamic Bank Bhd have allocated RM3 billion for the disbursement of sustainability-linked loans (SLLs).

The group said in a statement yesterday that the loans are for corporate borrowers who are keen to enhance their sustainability performance in alignment with any of the 17 Sustainable Development Goals (SDGs).

CIMB is one of the first in the country to introduce this proposition which aims to facilitate and support environmentally and socially sustainable economic activity and growth.

SLLs are a type of financing instrument and/or contingent facility where the borrower receives financial incentives upon achieving pre-agreed Sustainability Performance Targets (SPTs).

Incentives are offered, in the form of interest rate rebates, if the borrower is able to demonstrate that it has achieved its SPTs. Availability of the SLL incentive is from Jan 1, 2020 to Dec 31, 2024.

CIMB said the use of proceeds in SLLs are not necessarily limited to “green” projects, but can also be for general corporate purposes.

“CIMB has introduced several new initiatives in the past year to intensify sustainability awareness and action with propositions that can create real, lasting impact environmentally, economically and socially (EES). The SLLs have been introduced from our active engagement with our clients to encourage them to embark on and further their own sustainability journeys.”

“The SLLs are a catalyst to urge businesses to embed EES considerations in their strategies in order to operate responsibly for the long-term well-being and sustainability of our environment and communities,” said CIMB group CEO Tengku Datuk Seri Zafrul Aziz.

He added that SDGs and indicators can be adjusted to be in line with the clients’ sustainability strategies and used as a guidance in the setting of SPTs.

email blast