Aeon Credit secures RM600 mln in sustainability-linked loans

KUALA LUMPUR, Jan 31 (Bernama) -- Aeon Credit Service (M) Bhd has secured RM600 million in sustainability-linked loans (SLLs) with three-year tenure from two Japanese banks and a local bank, namely Mizuho Bank (Malaysia) Bhd, MUFG Bank (Malaysia) Bhd and CIMB Bank Bhd.

The group said the SLLs are a recognition of its efforts in environmental, social and governance (ESG) practices, and the proceeds will be used for general working capital and refinancing purposes as well as to enhance its sustainability performance that would contribute to the United Nations’ Sustainable Development Goals.

In a statement today, Aeon Credit said that upon securing the SLLs, predetermined sustainability performance targets (SPTs) in accordance with the group’s existing sustainability framework are established for assessment purposes.

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“Aeon Credit will be incorporating the SPTs into the assessment of business and financial performance where interest rate adjustment is subjected to the achievement of the targets,” it said.

Managing director Daisuke Maeda commented that securing the SLLs marked another milestone for the group to continually strengthen its commitments towards ESG while creating long-term value for its stakeholders.

“As guided by the corporate philosophy of pursuing peace, respecting humanity and contributing to local communities, we recognise the importance of embedding the sustainability elements into our business model and daily operations.

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“We have set our commitments including to be the market leader for electric motorcycle financing, provide financial inclusion for micro-enterprises, promote ESG education in schools, while continuing our efforts to work towards carbon neutral business and uphold good corporate governance practices,” he added.

-- BERNAMA