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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
