The SLL is StarHub’s maiden SLL, and CIMB’s first since announcing in January 2020 that it is committing RM3 billion to SLL for corporate borrowers.

KUALA LUMPUR, Sept 18 (Bernama) -- CIMB Bank Berhad (“CIMB” or “the Bank”) has entered into an RM270 million sustainability-linked term loan facility agreement with Malaren International Sdn. Bhd., a subsidiary of StarHub Group (“StarHub”), a leading Singapore provider of communications, information and entertainment services. This 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. The SLL also marks 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. 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”).

Gurdip Singh Sidhu, Group Chief Strategy & Design Officer, CIMB Group, said, “We are pleased to announce our very first SLL. This 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.”

StarHub’s commitment and transformation to become a more responsible and sustainable business began in 2008. It has since implemented many sustainable and green practices across the business, including tackling electronic waste (e-waste), reducing energy and water consumption and promoting actions to address climate change while delivering world-class communications, entertainment and digital solutions to consumers as well as corporate and government clients.

Dennis Chia, Chief Financial Officer of StarHub, added, “As we are driving our business to support the growth and development of new services, we are pleased to underpin our commitment in our sustainability strategy by taking up our very first sustainability-linked loan with CIMB. We look forward to more opportunities to participate in sustainability-linked financing to proactively drive a sustainable business and enhance the performance of the company.”

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 FY2021 to FY2023. 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.

“We are cognisant of the risks and opportunities associated with climate change, as well as our multifaceted role as a financial institution in working with stakeholders to advance sustainability principles. This SLL is a testament to CIMB’s commitment to help clients on their sustainability journeys, in this case by incorporating environmental and social considerations into financing terms to drive sustainable corporate behaviour. Our aim is to encourage and enable positive developments such as climate risk mitigation and adaptation, as well as financial inclusion. We hope to be able to announce more SLLs and sustainability-linked developments with like-minded clients like StarHub in the near future,” Gurdip added.

CIMB is a founding signatory of the United Nations Environment Programme Finance Initiative (“UNEP FI”) Principles for Responsible Banking, the first ASEAN banking group to become a signatory, and a signatory of the Collective Commitment on Climate Action. In 2019, CIMB introduced its Group Sustainable Financing Policy and the Positive Impact Products & Services (“PIPS”) Framework. In line with these, CIMB was also one of the first banks in Malaysia to announce the SLL incentive, with RM3 billion being set aside for corporate borrowers.

About CIMB

CIMB is one of ASEAN’s leading universal banking groups and Malaysia’s second largest financial services provider, by assets. Listed on Bursa Malaysia via CIMB Group Holdings Berhad, it had a market capitalisation of approximately RM35.1 billion as at 30 June 2020. It offers consumer banking, commercial banking, wholesale banking, transaction banking, Islamic banking and asset management products and services. Headquartered in Kuala Lumpur, the Group is present in all 10 ASEAN nations (Malaysia, Indonesia, Singapore, Thailand, Cambodia, Brunei, Vietnam, Myanmar, Laos and Philippines). Beyond ASEAN, the Group has market presence in China, Hong Kong, India, Korea, the US and UK.

CIMB has one of the most extensive retail branch networks in ASEAN with 669 branches and around 35,000 employees as at 30 June 2020. The Group’s investment banking arm is one of the largest Asia Pacific-based investment banks, while it offers comprehensive research coverage around of 950 stocks in the region via its CGS-CIMB joint venture. CIMB is also the 92.5% shareholder of Bank CIMB Niaga in Indonesia, and 94.8% shareholder of CIMB Thai in Thailand.

About StarHub

StarHub is a leading homegrown Singapore company that delivers world-class communications, entertainment and digital solutions. With our extensive fibre and wireless infrastructure and global partnerships, we bring to people, homes and enterprises quality mobile and fixed services, a broad suite of premium content, and a diverse range of communication solutions. We develop and deliver to corporate and government clients solutions incorporating artificial intelligence, cyber security, data analytics, Internet of Things and robotics. We are committed to conducting our business in a sustainable and environmentally responsible manner. Launched in 2000 and listed on the Singapore Exchange mainboard since 2004, StarHub is a component stock of the SGX Sustainability Leaders Index and the SGX Sustainability Leaders Enhanced Index. Visit www.starhub.com for more information.

SOURCE:  CIMB Group Holdings Berhad

FOR MORE INFORMATION, PLEASE CONTACT:
Name: Lynn Guha Thakurta / Juanita
Johari Group Corporate Communications
CIMB Group Holdings Berhad
Email: lynn.thakurta@cimb.com / juanita.johari@cimb.com

--BERNAMA