KUALA LUMPUR: Maybank and Kuala Lumpur Kepong Bhd (KLK) have set up KLK’s first sustainability-linked loan (SLL) of RM500mil for the group’s general working capital requirements.
Maybank, as the sole sustainability structuring adviser, had structured the SLL to align KLK’s financial strategy with the group’s commitment to environmentally and socially responsible practices.
The SLL aligns to the Sustainability-Linked Loan Principles 2023 outlined by the Loan Market Association, Asia Pacific Loan Market Association, and Loan Syndication and Trading Association, which will feature a pricing adjustment mechanism benchmarked against the achievement of predetermined Sustainability Performance Targets (SPTs).
The selected key performance indicator (KPI) reflects KLK Group’s commitment to reducing greenhouse gas intensity, aligning with KLK’s long-term sustainability goal.
“We are pleased to have signed our maiden SLL with Maybank, which is a significant milestone for the group. Our readiness to embrace sustainable financing pivots on our recently announced sustainability commitments which includes key areas such as carbon emission reduction, biodiversity conservation and social responsibilities. This facility also demonstrates how people, planet and businesses can thrive with sustainability,” KLK group chief operating officer Lee Jia Zhang said in a statement.
Meanwhile, Maybank global banking group chief executive officer Datuk Muzaffar Hisham said KLK’s first sustainability loan sets the stage for further collaborations in driving long-term ESG initiatives.
“As Maybank becomes the preferred partner to provide end-to-end sustainable and transition financing solutions, it has been supporting clients in transitioning to a low carbon footprint, contributing to a more sustainable future.”