Kuala Lumpur Kepong Bhd (KLK) has achieved a significant milestone by securing its inaugural sustainability-linked loan (SLL) of RM500 million from Maybank, signaling a joint commitment toward sustainable development practices.
Maybank, in a joint statement on Tuesday, highlighted that this SLL marks a pivotal move for KLK, aligning its financial strategy with a dedication to environmentally and socially responsible practices, in line with the company’s recently disclosed sustainability commitments. Notably, the loan incorporates a pricing adjustment mechanism linked to predefined sustainability performance targets (SPTs).
This initiative falls in line with the Sustainability-Linked Loan Principles 2023 issued by prominent bodies like the Loan Market Association, Asia Pacific Loan Market Association, and Loan Syndication and Trading Association. The loan’s selected key performance indicator (KPI) mirrors KLK’s ambition to curtail its greenhouse gas intensity, contributing to the global fight against climate change.
Lee Jia Zhang, KLK’s group chief operating officer, emphasized the significance of this maiden SLL with Maybank, underscoring the group’s strong commitment to sustainable financing. He highlighted KLK’s sustainability commitments encompassing vital aspects such as carbon emission reduction, biodiversity conservation, and social responsibilities.
Maybank’s Group CEO of Global Banking, Datuk Muzaffar Hisham, hailed KLK’s inaugural sustainability loan as a catalyst for further collaboration aimed at driving long-term Environmental, Social, and Governance (ESG) initiatives. He outlined Maybank’s dedication to supporting clients in transitioning toward a low carbon footprint, contributing significantly to a more sustainable future.
As of the report’s filing on Tuesday, KLK’s shares remained unchanged at RM21.40 per share, valuing the group at RM23.12 billion.