PETALING JAYA: CIMB Bank Bhd has launched a sustainability-linked treasury programme with Farm Fresh Bhd and Sunway Bhd via Sunway Treasury Sdn Bhd as its pioneering clients.
The bank said in a statement that the launch represented the first two in a new series of bespoke treasury product offerings by CIMB that allowed clients to embed their environmental, social and governance (ESG) aspirations into thematic treasury risk-management solutions.
It said the programme, a first in Malaysia, entailed recurring flow transactions for customers’ business activity conversion cycles as well as more episodic balance sheet hedging.
“In order to receive a sustainability-linked rebate, the programme requires ongoing commitment from clients to achieve their sustainability performance.
“This is measured through pre-agreed Sustainability Performance Targets, which are unique for each client’s business profile and subjected to stringent independent third-party verification,” it said.
“By combining our market leadership positions in both treasury and sustainable finance, we are proud to walk the journey with our customers from the one-off transactions that the market has seen, into this recurring business-as-usual flow programme, reflecting the maturity of both ESG treasury solutioning as well as customers’ acceptance,” said group wholesale banking and group treasurer Chu Kok Wei.
Chu added that together with Farm Fresh and Sunway, the programme will bring CIMB closer to achieving its sustainable finance targets and creating positive impacts, guided by its green, social, sustainable impact products and services or GSSIPS Framework.