20 November 2024
Kuala Lumpur: CIMB Bank Berhad (“CIMB”) through its Hong Kong branch recently onboarded Hong Kong’s Shangri-La Asia Limited (“Shangri-La Asia”) and Kerry Properties Limited (“Kerry Properties”) as clients for its sustainability linked loan (“SLL”), embedding environmental, social and governance (“ESG”) aspirations into their funding/borrowing.
The SLL requires ongoing commitments from both Shangri-La Asia and Kerry Properties to deliver their sustainability performance in order to receive sustainability-linked rebates/incentives, which are tied to pre-agreed Sustainability Performance Targets (“SPTs”) that are unique for each client’s business profile and subjected to stringent independent third-party verification.
Shangri-La Asia’s SLL is a five-year bilateral term loan of CNH500 million and while the SLL extended to Kerry Properties is a five-year agreement totaling HKD500 million consisting of a term loan and revolving credit facility.
Shangri-La Asia’s sustainability targets include annual reductions, covering the areas of energy intensity, carbon intensity, water intensity, single-use plastics usage and employee work injury rate. Meanwhile, the sustainability targets for Kerry Properties include maintaining inclusion in the Hang Seng Corporate Sustainability Benchmark Index, targets for new investment properties achieving “Green Certification” according to pre-agreed conditions, and reduction in the Group’s greenhouse gas emissions intensity.
Chu Kok Wei, Chief Executive Officer of Group Wholesale Banking, CIMB Group said, “We are pleased to support Shangri-La Asia and Kerry Properties in their sustainability journeys. We take our commitment to sustainability with utmost priority, recognising our role as a financial institution in fostering sustainable development alongside our stakeholders. The SLL advances our dedication towards sustainable finance by integrating environmental and social considerations into financing terms, which encourages and drives sustainable corporate practices in the region and beyond. We look forward to continuing to partner our clients across all sectors as they progress along the path of their ESG aspirations."
The SLL is set to spur greater commitment to sustainability on the part of both organisations and at the same time contribute to CIMB Group’s commitment to providing its clients with a diverse range of sustainable finance solutions as guided by the Group’s Green, Social, Sustainable Impact Products and Services (“GSSIPS”) framework.
