PETALING JAYA: Sabah Credit Corp (SCC) has secured a RM100 million sustainability-linked loan (SLL) in the form of a revolving credit facility from CIMB Bank Bhd to be utilised towards socio-economic development efforts in Sabah.
This also makes SCC the first statutory body from East Malaysia and the first financial institution to secure a loan with sustainability performance targets (SPT).
The SLL has been structured around two key performance indicators linked to its sustainability and socio-economic agenda in Sabah. Among the SPT are the cumulative disbursement of loans & financing to the bottom 40 (B40) segment, and its corporate social responsibility contribution to local communities.
The bank will grant a rebate against the loan interest if SCC achieves these SPT.
SCC CEO George Taitim Tulas believes the loan will support its mission to improve the accessibility of financing facilities to Sabahans and drive socio-economic growth in the state as it gives back to the community.
“The SLL has quantifiable targets which would provide greater transparency on our impact within the state, unlocking value for all our stakeholders. This is a significant milestone for SCC and demonstrates our readiness to embrace sustainable financing in driving our developmental agenda within Sabah,” he said in a statement today.
CIMB group CEO Datuk Abdul Rahman Ahmad said as a purpose-driven organisation, this represents its continued focus on incorporating environmental and social considerations into its financing terms, incentivising sustainable practices within the region, thereby creating a win-win-win situation for its business and clients, as well as people and planet.
“We look forward to working with more clients on sustainable or sustainability-linked offerings in our effort to build a more equitable, sustainable and resilient economy.”
In 2021, CIMB doubled down on its ambition to become an Asean sustainability leader by committing to achieve RM30 billion in sustainable finance by 2024. This target includes its SLL offering, for which CIMB’s total SLL issuance has exceeded RM1 billion to date.
The banking group has also committed to achieve net zero greenhouse gas emissions, including financed emissions, by 2050.
In October last year, it entered into a landmark RM2.45 billion sustainability-linked derivative transaction with targets linked to CIMB’s own sustainability commitments.
