This makes SCC the first statutory body from East Malaysia and the first financial institution in Malaysia to have secured a loan that is linked to sustainability performance targets (SPTs).
This loan has been structured around two key performance indicators (KPIs) that are linked to SCC’s sustainability and socio-economic agenda in Sabah, with pre-agreed SPTs linked to each KPI, said SCC and CIMB in a joint statement released here, today.
It said the SPTs include the cumulative disbursement of loans/financing to the B40 segment, as
well as SCC’s contribution in local communities through its corporate social responsibility (CSR) foundation, Yayasan Perbadanan Pinjaman Sabah (YPPS).
CIMB will grant a rebate against the loan interest if SCC achieves these SPTs, it said.
"This is a significant milestone for SCC and demonstrates our readiness to embrace sustainable financing in driving our developmental agenda within Sabah.
"We will also intensify our efforts to strengthen environmental, social and governance ("ESG”) integration across our business, which we are confident will ultimately help SCC realise our mandate,” SCC chief executive officer George Taitim Tulas said.
Meanwhile, CIMB Group chief executive officer Datuk Abdul Rahman Ahmad 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, as well as people and planet.” - Bernama