CIMB launches landmark Sustainability-Linked Treasury Programme, spearheaded by Farm Fresh Berhad and Sunway Berhad as pioneer clients
7 December 2022
Kuala Lumpur: CIMB Bank Berhad (“CIMB”) announced today that it has launched a landmark Sustainability-Linked Treasury Programme (“the Programme”), spearheaded by Farm Fresh Berhad and Sunway Berhad, acting through its subsidiary Sunway Treasury Sdn. Bhd., as its pioneering clients. 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.
A first-of-its-kind in Malaysia, the Programme encompasses recurring flow transactions for customers’ business activity conversion cycles (e.g. imports / exports), as well as more episodic balance sheet hedging. 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 (“SPTs”), which are unique for each client’s business profile and subjected to stringent independent third party verification.
Chu Kok Wei, Co-CEO, Group Wholesale Banking & Group Treasurer, CIMB Group said, “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. CIMB is honoured to partner with Farm Fresh Berhad in its corporate journey, from its IPO in March 2022, where CIMB was appointed as the Sole Principal Advisor, Joint Global Co-ordinator, Joint Managing Underwriter and Joint Underwriter, to today’s ESG progress."
“We are also pleased to continue our long-standing commitment in providing innovative solutions to Sunway Berhad, 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.
Loi Tuan Ee, Farm Fresh Berhad’s Group Managing Director and Group Chief Executive Officer said, “We are pleased to have the opportunity to be at the forefront of innovation in the Malaysian treasury solution space as a pioneer client to come onboard CIMB’s new Sustainability-Linked Treasury Programme. Being a pioneer in such a Programme is in line with our efforts to show leadership in creating a better future for stakeholders, society, future generations and the environment. Our journey to do well by doing good has extended to our farms being the first in Asia to receive Certified Humane® Accreditation from Humane Farm Animal Care (HFAC) in 2021, as well as our sustainable dairy farming practices, which were honoured as part of the 25 inspirational organizational initiatives in Asia-Pacific region under the Steward Leadership 25 (SL25) in November 2022. In addition, our role in enriching society with the micro-entrepreneur network has also led us to receive the ASEAN Inclusive Business Award in 2020."
Chong Chang Choong, Group Chief Financial Officer, Sunway Berhad said, “Sunway Berhad is pleased to be the first to take advantage of the unique benefits of CIMB’s Sustainability-Linked Treasury Programme and playing a market-leading role in advancing innovation in the local capital markets. As a responsible corporate citizen, it is in line with our responsibility to our universe of stakeholders via our commitment to advancing ESG in the corporate space."
As a purpose driven organisation and in line with its Forward23+ strategic plan, CIMB Group is continuously stepping up on sustainability innovation, in order to achieve its ambition to become a leading focused ASEAN bank and a sustainability leader. Over the past 2 years, CIMB has executed several significant sustainable financing transactions including its landmark sustainability-linked derivative (“SLD”) in October 2021, the world’s first Malaysian Ringgit denominated SLD transaction and Asia’s largest by notional value. Most recently, the Group raised its sustainable finance target to RM60 billion after having met its original target of RM30 billion two years ahead of schedule.
(L-R) Mohd Khairul Mat Hassan, Chief Financial Officer of Farm Fresh Berhad; Loi Tuan Ee, Group Managing Director & Group Chief Executive Officer of Farm Fresh Berhad; Chu Kok Wei, Co-CEO, Group Wholesale Banking & Group Treasurer of CIMB Group and Ina Hasniza Ibrahim, Regional Head Corporate Sales & Regional Islamic Treasurer of CIMB Group at the signing ceremony.
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