BUSINESS

KLK INKS MAIDEN SUSTAINABILITY-LINKED LOAN OF RM500 MLN WITH MAYBANK

05/12/2023 10:27 AM

KUALA LUMPUR, Dec 5 (Bernama) -- Kuala Lumpur Kepong Bhd (KLK) has signed its first sustainability-linked loan (SLL) of RM500 million with Maybank for the group’s general working capital requirements. 

According to a joint statement today, this milestone underscores the shared vision and commitment of both organisations to achieve positive and sustainable outcome

“Serving as the sole sustainability structuring adviser, Maybank had structured the SLL to align KLK’s financial strategy with the group’s commitment to environmentally and socially responsible practices,” it said.

The SLL aligns to the Sustainability-Linked Loan Principles 2023 outlined by the Loan Market Association, Asia Pacific Loan Market Association, and Loan Syndication and Trading Association, which will feature a pricing adjustment mechanism benchmarked against the achievement of predetermined sustainability performance targets (SPTs).

The selected key performance indicator reflects the KLK group’s commitment to reducing greenhouse gas intensity, aligning with the plantation and resource-based manufacturing group’s long-term sustainability goal.

KLK group chief operating officer Lee Jia Zhang said the maiden SLL with Maybank is a significant milestone for the plantation and resource-based manufacturing group.

“Our readiness to embrace sustainable financing pivots on our recently announced sustainability commitments which includes key areas such as carbon emission reduction, biodiversity conservation and social responsibilities. This facility also demonstrates how people, planet and businesses can thrive with sustainability,” he said.

Maybank Global Banking group chief executive Datuk Muzaffar Hisham said KLK’s first sustainability loan sets the stage for further collaborations in driving long-term environmental, social and governance (ESG) initiatives.

“As Maybank becomes the preferred partner to provide end-to-end sustainable and transition financing solutions, it has been supporting clients in transitioning to a low carbon footprint, contributing to a more sustainable future,” he added.

-- BERNAMA


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