CIMB Bank Berhad launched its new Sustainability-Linked Treasury Programme together with Farm Fresh Berhad and Sunway Berhad, as its pioneering clients. These are the first two in a new series of bespoke Treasury product offerings by CIMB that allow clients to embed their environmental, social and governance aspirations into thematic Treasury risk management solutions.
A first-of-its-kind in Malaysia, the Programme encompasses recurring flow transactions for customers’ business activity conversion cycles (e.g. imports / exports), 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 (“SPTs”), which are unique for each client’s business profile and subjected to stringent independent third-party verification.
Chu Kok Wei, Co-CEO, Group Wholesale Banking & Group Treasurer, CIMB Group 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 solutions as well as customers’ acceptance.”’
Together, the Programme will bring CIMB closer to achieving its sustainable finance targets and creating positive impacts, guided by our Green, Social, Sustainable Impact Products and Services (“GSSIPS”) Framework,” added Chu. Meanwhile, Loi Tuan Ee, Farm Fresh Berhad’s Group Managing Director and Group Chief Executive Officer said, “We are pleased to have the opportunity to be at the forefront of innovation in the Malaysian treasury solution space as a pioneering client to come onboard CIMB’s new Sustainability-Linked Treasury Programme.
Chong Chang Choong, Group Chief Financial Officer, Sunway Berhad said, “Sunway Berhad is pleased to be the first to take advantage of the unique benefits of CIMB’s Sustainability-Linked Treasury Programme and playing a market-leading role in advancing innovation in the local capital markets. As a responsible corporate citizen, it is in line with our responsibility to our
universe of stakeholders via our commitment to advancing ESG in the corporate space.”
Over the past 2 years, CIMB has executed several significant sustainable financing transactions including its landmark sustainability-linked derivative in October 2021, the world’s first Malaysian Ringgit-denominated SLD transaction and Asia’s largest by notional value. Most recently, the Group raised its sustainable finance target to RM60 billion after having met its original target of RM30 billion two years ahead of schedule.
