StarHub’s subsidiary Malaren International has entered into a RM270 million ($88.8 million) sustainability-linked term loan facility agreement with CIMB Bank Berhad on September 17.
The sustainability-linked loan is the first for both companies.
CIMB will grant a rebate against the loan interest if the telco is able to achieve the pre-agreed annual targets in its CDP Climate Change Scores from FY2021 to FY2023. CDP, which is the leading global benchmark on the management of climate-related impacts, used to be known as the Carbon Disclosure Project.
“As we are driving our business to support the growth and development of new services, we are pleased to underpin our commitment in our sustainability strategy by taking up our very first sustainability-linked loan with CIMB,” says Dennis Chia, StarHub’s CFO.
“We are cognisant of the risks and opportunities associated with climate change, as well as our multifaceted role as a financial institution in working with stakeholders to advance sustainability principles,” says Gurdip Singh Sidhu, group chief strategy and design officer at CIMB Group.
“Our aim is to encourage and enable positive developments such as climate risk mitigation and adaption, as well as financial inclusion,” Gurdip adds.
As at 10.26am, shares in StarHub are trading 1 cent higher, or 0.8% up, at $1.19.
