KUALA LUMPUR (Dec 5): Kuala Lumpur Kepong Bhd (KLK) secured its first sustainability-linked loan (SLL) of RM500 million for the group’s general working capital requirements from Maybank, marking a significant milestone for both groups in pursuit of their sustainable development practices.
In a joint statement on Tuesday, Maybank said the SLL is structured to align KLK’s financial strategy with its commitment to environmentally and socially responsible practices, as outlined in its recently announced sustainability commitments. The loan features a pricing adjustment mechanism that is benchmarked against the achievement of predetermined sustainability performance targets (SPTs).
According to Maybank, the SLL is in accordance with the Sustainability-Linked Loan Principles 2023 issued by the Loan Market Association, Asia Pacific Loan Market Association, and Loan Syndication and Trading Association, which provide guidelines for the development and promotion of SLLs. The selected key performance indicator (KPI) reflects KLK’s goal to reduce its greenhouse gas intensity, in line with the global efforts to combat climate change.
KLK group chief operating officer Lee Jia Zhang said the maiden SLL with Maybank is a significant milestone for the 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.”
Meanwhile, Maybank’s Group CEO of Global Banking Datuk Muzaffar Hisham said KLK’s first sustainability loan sets the stage for further collaborations in driving long-term 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.”
At the time of writing on Tuesday, the shares in KLK were unchanged at RM21.40 per share, valuing the group at RM23.12 billion.
Source: TheEdge - 6 Dec 2023
Chart | Stock Name | Last | Change | Volume |
---|
Created by edgeinvest | Aug 23, 2024
Created by edgeinvest | Aug 23, 2024
Created by edgeinvest | Aug 23, 2024
Created by edgeinvest | Aug 23, 2024
Created by edgeinvest | Aug 23, 2024
Created by edgeinvest | Aug 23, 2024
Created by edgeinvest | Aug 23, 2024
Created by edgeinvest | Aug 23, 2024
Created by edgeinvest | Aug 23, 2024