AEON Credit, MUFG Bank Sign RM500 Mln Loan That Align With Social Outcomes

KUALA LUMPUR, Sept 29 (Bernama) -- MUFG Bank (Malaysia) Bhd, a subsidiary of Mitsubishi UFJ Financial Group Inc has signed a RM500 million loan with AEON Credit Service (M) Bhd, marking Malaysia’s largest loan to date, aligned with social outcomes and the bank’s debut transaction in the country.

AEON Credit said the loan is designed to support AEON Credit’s financing to underserved communities, including low-income groups and small businesses in new growth areas.

It also aligns with Bank Negara Malaysia’s Financial Inclusion Framework 2023-2026.

“It's MUFG’s fourth sustainable finance transaction with AEON Credit in Asia Pacific, underscoring the longstanding relationship between both companies and a joint alignment towards promoting sustainability and delivering positive social outcomes.

“Structured in alignment with social loan principles published by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications and Trading Association, the facility ensures adherence to globally recognised standards,” a joint statement said today.

AEON Credit will provide annual disclosures to lenders, detailing allocation of proceeds and the social outcomes achieved.

AEON Credit managing director Daisuke Maeda said the financing initiative will provide essential working capital support to underserved customers, particularly individuals with a gross monthly income of RM2,500 and below, and those residing in underrepresented regions.

“Beyond expanding access to financial services, this initiative reflects our commitment to align business growth with meaningful social impact, strengthening our responsibility to society, in line with AEON Group’s sustainability vision,” he said.

Meanwhile, MUFG chief executive officer and country head of Malaysia, Motohide Okuda said the transaction marks a significant milestone in Malaysia’s sustainability financing landscape and reinforces the bank’s ongoing commitment to support clients’ ambitions to create long-lasting positive impact.

“We are honoured to be AEON Credit’s trusted partner once again, our second sustainable finance transaction in Malaysia. It reflects the strength of our relationship and shared dedication to foster inclusive and resilient growth in Malaysia,” he said.

According to the statement, the partnership also strengthens the financial sector’s role in advancing social impact in Malaysia, complementing existing green and sustainability-linked financing solutions.

It also supports national objectives outlined in the 12th Malaysia Plan and aligns with the United Nations’ sustainable development goals (SDGs), particularly SDG 10 to reduce inequalities.

-- BERNAMA