CIMB Bank Berhad and CIMB Islamic Bank Berhad have unveiled new Sustainability-Linked Financing (SLF) structures aimed at businesses, including SMEs, in the oil palm and real estate sectors. The initiative, announced on 19 October, seeks to simplify access to sustainable financing and support measurable decarbonisation goals.
The enhanced SLF programme offers financial rebates to businesses that meet pre-determined Sustainability Performance Targets (SPTs), such as reducing greenhouse gas emissions. For the real estate sector, Building Energy Intensity (BEI) is introduced as an alternative impact measure, allowing businesses to demonstrate progress in emissions reduction.
CIMB’s new financing structure incentivises sustainability initiatives like renewable energy and waste management, offering rebates of up to 0.50% per annum. Ahmad Shazli Kamarulzaman, Co-CEO of Group Commercial Banking at CIMB, stated, “Our new SLF structures widen access to sustainable financing across the oil palm and real estate sectors.”
In the oil palm sector, eligible initiatives include methane capture and biomass utilisation. Dr. Mohd Hefni Rusli from the Malaysia Palm Oil Board highlighted the importance of sector-specific sustainability initiatives for strengthening sustainability performance.
For the real estate sector, initiatives such as installing solar panels and obtaining green building certifications are eligible. Ir. Ashwin Thurairajah, Executive Director of GreenRE Sdn Bhd, noted the role of financing solutions in encouraging sustainable building practices.
CIMB’s dual-SPT structure, part of its GreenBizReadyTM proposition, aligns with its commitment to mobilise RM300b in sustainable finance by 2030. This initiative reflects CIMB’s ongoing efforts to support a transition towards a lower-carbon economy.
