Sabah Credit Corporation (SCC) has become the first financial institution in Malaysia to secured a loan linked to sustainability performance targets (SPTs) after getting a RM100 million sustainability-linked loan in the form of a revolving credit facility from CIMB Bank Bhd.
Through this SLL, SCC seeks to intensify its efforts to catalyse socio-economic
development in Sabah whilst demonstrating its firm commitment towards driving measurable positive impacts in the community.
The SLL has been structured around two key performance indicators (KPIs) linked to SCC’s sustainability and socio-economic agenda in Sabah, with pre-agreed SPTs linked to each KPI such as the cumulative disbursement of loans/financing to the B40 segment, as well as SCC’s contribution in local communities through its corporate social responsibility foundation, Yayasan Perbadanan Pinjaman Sabah.
CIMB will grant a rebate against the loan interest if SCC achieves these SPTs.
SCC CEO George Taitim Tulas said, “SCC is pleased to have secured our maiden SLL from CIMB, which we believe will support our mission to improve the accessibility
of financing facilities to Sabahans and drive socio-economic growth in Sabah as we give back to the community.”
The SLL, he added, has quantifiable targets which would provide greater transparency on SCC’s impact within the state, unlocking value for all its stakeholders, noting that the effort demonstrates the organisation’s readiness to embrace sustainable financing in driving its developmental agenda.
“We will also intensify our efforts to strengthen environmental, social and governance integration across our business, which we are confident will ultimately help SCC to realise our mandate.”
Dato’ Abdul Rahman Ahmad, CIMB Group CEO said: “CIMB is pleased to support SCC’s sustainability and socio-economic agenda through our SLL offering. As a purpose-driven organisation, this represents our continued focus on incorporating environmental and social considerations into our financing terms, incentivising sustainable practices within the region, thereby creating a win-win-win situation for our business and our clients.
“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.”
Last year, CIMB Group 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.
It was also one of the banks involved in the provision of an S$540 million SLL to OUE Commercial Real Estate Investment Trust, a real estate investment trust in Singapore which incorporated interest rate reductions contingent upon OUE C-REIT’s achievement of sustainability targets that include improving energy and water efficiencies in their commercial property portfolio in Singapore and Shanghai.