At a glance
- Company
- CapitaLand Malaysia Trust
- Announcement
- Financing
- Location
- Kuala Lumpur, Malaysia
Key figures
- Loan facility converted to sustainability-linked financing
- RM693 million
- Sustainability-linked finance raised since first such loan in December 2022
- approximately RM750 million
People
- Tan Choon SiangCEO of CapitaLand Malaysia REIT Management
- Lee Heng KengGroup Head, Corporate Banking of Group Wholesale Banking, CIMB Group
- Novan AmirudinCo-Chief Executive Officer, Group Wholesale Banking of CIMB Group
Products and programs
Kuala Lumpur, December 12, 2023 -- 
Caption: (L-R) Mr Lee Heng Keng, Group Head, Corporate Banking of Group Wholesale Banking, CIMB Group and Mr Tan Choon Siang, CEO of CapitaLand Malaysia REIT Management at the signing ceremony.
CapitaLand Malaysia Trust (“CLMT”), through its trustee, MTrustee Berhad, and CIMB Bank Berhad (“CIMB” or “the Bank”), announced today that CLMT’s loan facility of RM693 million from CIMB has been converted into a sustainability-linked loan facility, for the funding of the acquisition of Queensbay Mall located in Penang, Malaysia. This facility marks CLMT’s largest loan facility to-date and is linked to the sustainability performance targets of Queensbay Mall.
CIMB will offer CLMT interest rate rebates on the committed term loan facility. These rebates will be based on pre-determined sustainability performance targets that have been set for Queensbay Mall. These include obtaining green building certification and achieving targeted reductions in energy consumption and are subjected to stringent third-party verifications.
A signing ceremony was held in conjunction with the announcement, with Mr Tan Choon Siang, CEO of CapitaLand Malaysia REIT Management (“CMRM”) and Mr Lee Heng Keng, Group Head, Corporate Banking of Group Wholesale Banking, CIMB Group, representing their respective organisations.
Mr Tan Choon Siang, CEO of CMRM said, “CLMT is firmly committed to incorporate sustainability practices with our business strategies and operations across our entire portfolio. By integrating ESG performance with our financial metrics, we reinforce our commitment to sustainability and responsible growth. Since obtaining our first sustainability-linked loan in December 2022, we have successfully raised approximately RM750 million in sustainability-linked finance. With the support of our partners such as CIMB, we are well-positioned to elevate our ESG efforts through our sustainable financing initiatives, in line with CapitaLand’s 2030 Sustainability Master Plan.”
Novan Amirudin, Co-Chief Executive Officer, Group Wholesale Banking of CIMB Group said, “We are honoured to embark on this journey with CLMT in the undertaking of this sustainability-linked financing, a testament to CIMB’s continued commitment to supporting clients from a wide range of industries and sectors to advance their ESG agenda and create positive impact through innovative sustainable finance solutions. The transaction is also in line with the Group’s ambition to become a leading focused ASEAN bank and ASEAN sustainability leader under our Forward23+ strategic plan.”
Mr Tan Choon Siang, CEO of CMRM
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In brief
CapitaLand Malaysia Trust (CLMT), acting through its trustee MTrustee Berhad, says its RM693 million loan from CIMB Bank has been converted into a sustainability-linked facility. The financing is intended to fund CLMT’s acquisition of Queensbay Mall in Penang, Malaysia, and is described as the trust’s largest loan facility to date. CIMB will provide interest rate rebates tied to sustainability targets for the mall, including green building certification and reductions in energy use. The targets are subject to third-party verification. At the signing, CLMT management said the facility advances its sustainability approach and noted that the trust had raised approximately RM750 million in sustainability-linked finance since obtaining its first such loan in December 2022. CIMB said the transaction supports clients’ environmental, social and governance efforts.
Key takeaways
- CLMT converted its RM693 million CIMB loan into a sustainability-linked facility for the Queensbay Mall acquisition.
- The loan is linked to green building certification and targeted energy-use reductions, with third-party verification.
- CIMB will offer interest rate rebates based on the mall’s sustainability performance targets.
- CLMT said it had raised approximately RM750 million in sustainability-linked finance since December 2022.
