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StarHub unit bags RM270m sustainability-linked loan from CIMB
MALAREN International, a StarHub subsidiary based in Malaysia, has entered into a RM270 million (S$88.7 million) sustainability-linked term loan facility agreement with CIMB Bank.
This is StarHub's first loan in which the interest is linked to the achievement of sustainability performance targets, the telco said on Thursday.
Under the agreement, StarHub will be eligible for interest savings each year if it is able to achieve pre-agreed annual targets for its CDP Climate Change Scores from FY21-23.
CDP, formerly known as the Carbon Disclosure Project, is a global benchmark on the management of climate-related impact. It assesses responders' progress towards environmental stewardship, StarHub said.
StarHub chief financial officer Dennis Chia said the telco is looking forward to more opportunities to participate in sustainability-linked financing, to proactively drive a sustainable business and enhance the performance of the company.
CIMB Group's group chief strategy and design officer Gurdip Singh Sidhu said the loan is the group's first sustainability-linked loan, and its first Malaysia-Singapore cross-border sustainability-linked transaction.
He added: "Since announcing our sustainability-linked offering early this year, we are encouraged by the high levels of interest among clients in Malaysia as well as the region."
StarHub shares were trading at S$1.19 as at 10.30am on Thursday, up S$0.01 or 0.9 per cent.