KUALA LUMPUR: CIMB Bank Bhd via its Hong Kong branch has onboarded Hong Kong’s Shangri-La Asia Limited and Kerry Properties Limited as clients for its sustainability linked loan (SLL).
According to the bank, the facility "embeds environmental, social and governance (ESG) aspirations into their funding/borrowing".
Shangri-La Asia’s SLL is a five-year bilateral term loan of CNH500 million, while the SLL extended to Kerry Properties is a five-year agreement totaling HK$500mil consisting of a term loan and revolving credit facility.
The SLL requires ongoing commitments from both Shangri-La Asia and Kerry Properties to deliver their sustainability performance in accordance to pre-agreed targets to receive sustainability-linked rebates/incentives.
These sustainability performance targets (SPT) are unique for each client’s business profile and subjected to stringent independent third-party verification, said CIMB.
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.
"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," said CIMB Group
CEO of group wholesale banking Chu Kok Wei in a statement.
