KUALA LUMPUR (Dec 7): CIMB Bank Bhd on Wednesday (Dec 7) launched the landmark Sustainability-Linked Treasury Programme led by pioneering clients Farm Fresh Bhd and Sunway Bhd via its subsidiary Sunway Treasury Sdn Bhd.
These are the first two in a new series of bespoke Treasury product offerings by CIMB that allow clients to embed their environmental, social and governance (ESG) aspirations into thematic Treasury risk management solutions, said the bank in a statement on Wednesday.
The first of its kind in Malaysia, the programme encompasses recurring flow transactions for customers’ business activity conversion cycles, such as imports or exports, as well as more episodic balance sheet hedging, and in order to receive a sustainability-linked rebate, the programme requires ongoing commitment from clients to achieve their sustainability performance.
This is measured through pre-agreed sustainability performance targets, which are unique for each client’s business profile and subjected to stringent independent third-party verification.
“By combining our market leadership positions in both Treasury and sustainable finance, we are proud to walk the journey with our customers, from the one-off transactions that the market has seen into this recurring business-as-usual flow programme, reflecting the maturity of both ESG Treasury solutioning as well as customers’ acceptance,” said CIMB’s co-chief executive officer, group wholesale banking, and group treasurer Chu Kok Wei.
“CIMB is honoured to partner with Farm Fresh in its corporate journey from its IPO (initial public offering) in March 2022, where CIMB was appointed as the sole principal adviser, joint global coordinator, joint managing underwriter and joint underwriter, to today’s ESG progress.
“We are also pleased to continue our long-standing commitment to providing innovative solutions to Sunway, as well as being a strategic partner to drive their sustainable development agenda and initiatives. Together, the programme will bring CIMB closer to achieving its sustainable finance targets and creating positive impacts, guided by our Green, Social, Sustainable Impact Products and Services (GSSIPS) Framework,” added Chu.
At the time of writing on Wednesday, CIMB shares were trading up 2.33% at RM5.70 apiece, giving the bank a market capitalisation of RM60.79 billion.