CIMB Launches RM3 Billion Sustainability-Linked Financing Programme For SMEs

CIMB Bank Berhad and CIMB Islamic Bank Berhad (CIMB) have enhanced their GreenBizReady proposition with the launch of Sustainability-Linked Financing (SLF) with an allocation of RM3 billion for small and medium enterprises (SMEs).

The SLF aims to incentivise SMEs to achieve credible greenhouse gas emission reduction targets through attractive financing rebates of up to 0.50% per annum, as they secure financing to meet their capital or expansion needs.

Once sustainability performance targets have been agreed with CIMB, SMEs only need to input data such as energy and fuel consumption into Malaysian Green Technology and Climate Change Corporation’s (MGTC) Low Carbon Operating System platform.

Additionally by combining the SLF with Bank Negara Malaysia’s  (BNM) Low Carbon Transition Facility, SMEs can also benefit from better financing rates.

As part of the SLF launch, CIMB inked a Memorandum of Cooperation with MGTC, with both parties committing to explore further opportunities to drive sustainability adoption among SMEs.

YB Nik Nazmi who witnessed the MoC said, “Sustainable economic growth is contingent upon our ability to ensure that our businesses—big or small—can adapt as we transition to a resilient, low-carbon economy in combatting the impacts of climate change. By leveraging public-private partnerships (“PPP”) and public-private-philanthropic partnerships (“PPPP”) as part of a whole-of-society approach, we can ensure that Malaysian businesses are well-positioned to thrive in tomorrow’s economy. This in  turn will be crucial to create a more inclusive and equitable Malaysia, which is also a worthy goal in and of itself.

“We are very pleased to build on our cooperation with MGTC, an existing key partner under our GreenBizReady proposition, to catalyse sustainable practices among SMEs. This will help them to remain competitive and resilient both regionally and globally, and at the same time encourage their participation and contributions to the country’s green transition as part of the recently announced National Energy Transition Roadmap (“NETR”),” said Ahmad Shazli Kamarulzaman, Deputy CEO, Group Commercial Banking, CIMB Group.

MGTC CEO, Ts. Shamsul Bahar Mohd Nor said “With the incentives and support offered by
CIMB, we invite businesses to adopt LCOS to achieve their sustainability goals and as a strategic advantage in positioning themselves at the forefront of Malaysia’s sustainable business landscape. We aspire to make carbon management accessible and affordable to industries as they strive to support Malaysia’s ambitious Net Zero 2050 target.

Besides reducing negative environmental impact, the Programme also aims to ensure SMEs’ business resilience and continued access to export markets by improving their sustainability performance. This will help them to adapt to rapid market and regulatory developments such as the EU Carbon Border Adjustment Mechanism, upcoming local regulations and the transition towards sustainable supply chains within the global economy.

The SLF for SMEs is also part of CIMB’s ambition to mobilise RM60 billion in sustainable finance by 2024, having met its original target of RM30 billion two years ahead of schedule. As at end 2022, CIMB has successfully mobilised RM54.3 billion in sustainable finance under its Green, Social, Sustainable Impact Products and Services (“GSSIPS”) framework, putting CIMB firmly on track towards becoming an ASEAN sustainability leader by 2024.

For more information about CIMB’s SLF for SMEs, visit https://cimb.com.my/greenbizready.

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