Malaysia's CIMB targets US$7.2b in sustainable finance by 2024

[KUALA LUMPUR] Malaysia's CIMB Group Holdings has committed to meet a US$7.16 billion target in sustainable finance offerings by 2024, the bank said on Wednesday.

The country's second largest lender by assets said the target includes wholesale and commercial financing, bonds and intermediation, wealth products and products that enable financial inclusion.

The group also plans on achieving net zero greenhouse gas emissions by 2050.

"CIMB has made good progress and is ahead of schedule in meeting its original target with over RM10 billion (S$3.22 billion) in offerings under its (sustainability) framework already achieved as of 2021," it said in a statement.

The announcement follows its larger rival Malayan Banking, which in July said it was committed to implementing a RM50 billion sustainable product framework within this year.

CIMB is also finalising an internal plan to identify and classify climate-aligned assets, economic activities and environmental, social and governance criteria, it said.

The bank has committed close to RM1 billion sustainability-linked loans for corporate clients, out of RM3 billion earmarked through 2024.

Earlier this year, CIMB was the lead manager for the government's dual tranche US$1.3 billion sukuk offering, where the US$800 million sustainability tranche was the world's first US-dollar sustainability sukuk offered by a sovereign.

CIMB also launched and priced Indonesia's US$3 billion global sukuk offering, including a US$750 million green sukuk tranche.

REUTERS