PETALING JAYA: CIMB Bank Bhd and CIMB Islamic Bank Bhd have introduced new sustainability-linked financing (SLF) structures for businesses, including small and medium enterprises (SMEs) in the oil palm and real estate sectors, as well as companies seeking to acquire or upgrade existing properties into green-certified buildings.
The enhanced offerings build on CIMB’s RM3bil SLF programme and GreenBizReady proposition, providing businesses with a simpler, more guided and rewarding pathway to adopt sector-relevant sustainable business practices, the bank said in a statement.
“The SLF programmes reward customers with attractive financing rebates when they meet pre-determined sustainability performance targets, including greenhouse gas emissions reduction.
“For the real estate sector, building energy intensity has also been introduced as an alternative measure of impact, enabling businesses to demonstrate credible progress in reducing the emissions intensity of their buildings while keeping pace with market expectations.”
CIMB said it now offers further incentives for businesses that implement sustainability initiatives material to their operations, such as renewable energy, energy efficiency, waste or water management, and recognised sustainability certifications.
“By rewarding businesses for sustainability initiatives that contribute towards longer-term emissions reductions, the enhanced SLF structure provides a practical and flexible route for businesses, including SMEs, to progress towards their sustainability targets while reducing costs and increasing their ability to receive financial rebates of up to 0.5% per annum under the SLF programme,” it said.
CIMB Group
commercial banking co-chief executive officer Ahmad Shazli Kamarulzaman said the new SLF structures widen access to sustainable financing across the oil palm and real estate sectors.
They also support companies seeking to acquire green-certified properties or upgrade existing buildings to meet green certification standards.
“Beyond oil palm plantation companies, the programmes also support palm oil mills, ensuring that support reaches all parts of the value chain.
“This enables more businesses, including SMEs, to pursue sustainable practices that are most relevant to their operations, while driving meaningful progress towards decarbonisation and responsible long-term growth.”
