Sustainability-Linked Loans (SLLs) are loan instruments and/or contingent facilities that incentivise the borrower’s achievement of ambitious, predetermined sustainability performance targets (SPTs). Incentives are offered in the form of interest rebates, if the borrower is able to achieve the SPTs. Launched in January 2020, the SLL offering is the first in Malaysia, targeted at corporate borrowers who are keen to enhance their sustainability performance in alignment with any of the 17 SDGs. With RM3 billion earmarked for SLLs, this incentive is effective from 1 January 2020 to 31 December 2024.
