CIMB Islamic Bank Berhad announced the onboarding of MTT Shipping Sdn. Bhd., its first Sustainability-Linked Treasury Programme client utilising the Bank’s Programme with Shariah-compliant hedging instruments.
MTT Shipping is one of the leading local carriers in Malaysia, providing container shipping services which cover routes from Peninsular Malaysia to East Malaysia as well as regional ports in Singapore, Thailand, Brunei, Indonesia and India.
First launched in December 2022, the Programme continues to attract clients who are looking to embed their environmental, social and governance (“ESG”) aspirations into longer term treasury solutions offered by the Bank. The Programme encompasses recurring flow transactions for clients’ business activity conversion cycles (e.g. imports/exports), as well as more episodic balance sheet hedging and risk management solutions. Under the Programme, MTT Shipping is entitled to receive a sustainability-linked reward based on the achievement of ambitious Sustainability Performance Targets which are subjected to stringent independent third party verification.
Ahmad Shahriman Mohd Shariff, Chief Executive Officer of CIMB Islamic said, “We are proud to embark on this journey with MTT Shipping to advance their sustainability goals through offering the first Shariah-compliant hedging solution in CIMB’s Sustainability-Linked Treasury Programme in meeting their ongoing business requirements. As a purpose-driven organisation, this exemplifies our commitment to not only prioritise product innovation, but also to generate long- term positive impacts to the economy, community and environment in line with the principles of Value-Based Intermediation (VBI). We look forward to continuing to meet our clients’ varied range of treasury requirements through bespoke treasury solutions that also help further their contributions in the ESG space.”
Dato’ Seri Kenny Ong said, “In recent years, we have seen an increasing number of ESG regulations in the maritime transport industry and we strive to ensure both our operations and decision-making processes are aligned to the policy recommendations and requirements set forth by the relevant regulatory bodies such as the International Maritime Organisation (“IMO”). This includes managing the carbon intensity indicator (CII) ratings of our vessels while aligning our overall emissions reduction trajectory to bein line with the IMO,”
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