CIMB to issue US$680mil SDG bond

CIMB group chief executive officer Tengku Datuk Seri Zafrul Aziz(pic) said the group was pleased with the success of its maiden SDG Bond transaction, as it aimed to be a catalyst for real action and a visible shaper of sustainability practices in the region.

PETALING JAYA: CIMB Bank Bhd will be issuing a US$680mil Sustainable Development Goals (SDG) bond, making it the international capital market’s first issuer from the Asean region

The bank, which recently priced its Formosa & Reg S SDG bond, said the bond would also be the first to be issued in the Formosa market.

The SDG bond, it said, is aligned with the global best practices and benchmark for sustainability bond principles, including the Social Bond Principles, Sustainability Bond Guidelines 2018 and the Asean Sustainability Bond Standards.

In a statement, CIMB said the bond was well-received, reflecting the trend in global sustainable investing assets, which surged to US$30 trillion last year.

Banks took up more than 76% of the SDG Bond, with the rest subscribed by securities firms and fund managers.

The bond will be issued on Oct 9 under the bank’s existing US$5bil Euro medium term note programme.

The bank said applications would be made to list the bond on Bursa Malaysia (Exempt Regime), SGX-ST, and the Taipei Exchange.

CIMB Group chief executive officer Tengku Datuk Seri Zafrul Aziz said the group was pleased with the success of its maiden SDG Bond transaction, as it aimed to be a catalyst for real action and a visible shaper of sustainability practices in the region.

“The business case for sustainability makes perfect sense: to close the gap in sustainable development and infrastructure, the world needs around US$2.5 trillion, two-thirds of which is estimated to be provided by banks.

“In other words, there is a huge opportunity out there and CIMB is well positioned to capture these opportunities, ”he said.

Cathay United Bank, SG Securities (HK) Limited, Taipei Branch and Standard Chartered Bank Taiwan Ltd are the joint bookrunners, while CIMB Investment Bank Bhd is the programme arranger and coordinator for the bond.