KUALA LUMPUR, Jan 6 (Bernama) — CIMB Bank Berhad and CIMB Islamic Bank Berhad (collectively “CIMB” or “the Bank”) recently launched its Sustainability-Linked Loans (“SLLs”) for corporate borrowers who are keen to enhance their sustainability performance in alignment with any of the 17 Sustainable Development Goals (SDGs). Reinforcing CIMB Group’s sustainability leadership in Malaysia, the Bank would be 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. SLLs assist and encourage borrowers to improve their sustainability profile or commitment as the financing terms and conditions are aligned to their SPTs. Availability of the SLL incentive is from 1 January 2020 to 31 December 2024. The use of proceeds in SLLs are not necessarily limited to ‘green’ projects, but can also be for general corporate purposes.