CIMB, MALAREN ENTER INTO RM270 MLN LOAN FACILITY AGREEMENT

KUALA LUMPUR, Sept 18  -- CIMB Bank Bhd has entered into a RM270 million sustainability-linked term loan facility agreement with Malaren International Sdn Bhd, a subsidiary of StarHub Group, a Singapore provider of communications, information and entertainment services.

The agreement marks the bank’s first sustainability-linked loan (SLL) since announcing its SLL offering in January 2020, with a commitment of RM3 billion to SLL for corporate borrowers, as well as StarHub’s maiden loan linked to sustainability performance targets.

“Sustainability is an integral part of both CIMB and StarHub’s strategy and operations. As an organisation that can influence sustainability best practices among its network, CIMB aims to steer clients towards adopting responsible business practices through mitigating negative impacts whilst enabling and incentivising positive corporate behaviours.

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“Providing this SLL is part of this sustainability approach, which facilitates corporate borrowers who are keen to enhance their sustainability performance in alignment with one or more of the 17 Sustainable Development Goals (SDGs),” CIMB said in a joint statement today.

Group chief strategy and design officer for CIMB Group, Gurdip Singh Sidhu said the facility is especially meaningful as it brings two large organisations together in this maiden Malaysia-Singapore cross-border sustainability-linked transaction.

“It is a testament also to CIMB’s commitment in driving the sustainability agenda across ASEAN. Since announcing our SLL offering early this year, we are encouraged by the high levels of interest amongst clients in Malaysia, as well as the region,” he said.

To incentivise environmental transparency and performance, CIMB will grant a rebate against the loan interest based on StarHub’s performance in its annual CDP Climate Change Scores from financial years 2021 to 2023.

“StarHub will be eligible for interest savings each year if it is able to achieve the pre-agreed annual targets on CDP Climate Change Scores. CDP, formerly known as the Carbon Disclosure Project, is a leading global benchmark on the management of climate-related impacts, to assess responders’ progress towards environmental stewardship,” it added.

-- BERNAMA