CapitaLand Malaysia Trust converts RM693 mil loan from CIMB into a sustainability-linked loan for funding of Penang mall buy

• CapitaLand Malaysia said the facility marks its largest loan facility to-date and is linked to the sustainability performance targets of Queensbay Mall.

KUALA LUMPUR (Dec 12): CapitaLand Malaysia Trust Bhd (CLMT) said it has converted its loan facility of RM693 million from CIMB Bank Bhd into a sustainability-linked loan facility for the funding of the acquisition of Queensbay Mall in Penang.

CLMT said the facility marks its largest loan facility to-date and is linked to the sustainability performance targets of Queensbay Mall.

"CIMB will offer CLMT interest rate rebates on the committed term loan facility. These rebates will be based on pre-determined sustainability performance targets that have been set for Queensbay Mall.

"These include obtaining green building certification and achieving targeted reductions in energy consumption and are subjected to stringent third-party verifications," the trust said in a statement on Tuesday.

CapitalLand Malaysia REIT Management chief executive officer (CEO) Tan Choon Siang said CLMT was committed to incorporating sustainability practices with its business strategies and operations across its entire portfolio.

"Since obtaining our first sustainability-linked loan in December 2022, we have successfully raised approximately RM750 million in sustainability linked finance.

“With the support of our partners such as CIMB, we are well-positioned to elevate our ESG [environmental, social and corporate governance] efforts through our sustainable financing initiatives, in line with CapitaLand’s 2030 Sustainability Master Plan,” added Tan.

CIMB's co-CEO for group wholesale banking, Novan Amiruddin, said the group is honoured to embark on this journey with CLMT in the undertaking of the sustainability-linked financing.

“The transaction is also in line with the group’s ambition to become a leading Asean bank and Asean sustainability leader under our Forward23+ strategic plan,” Novan added.

Units in CapitaLand ended unchanged at 55 sen, giving the trust a market capitalisation of RM1.49 billion.

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