Sarawak Energy secures $24.13m SLL from CIMB

The loan will be in the form of a revolving credit facility.

Sarawak Energy has secured an RM100m (US$24.13m) sustainability-linked loan (SLL) in the form of a revolving credit facility from CIMB.

Sarawak Energy is currently the first East Malaysian company, and the first utility company in Malaysia, to acquire a loan linked to measurable sustainability performance targets (SPTs).

The announcement was made via a virtual SLL acceptance ceremony during a Fireside Chat session with Sarawak Energy on “Creating a Sustainable Business Model that Works,” in conjunction with CIMB’s The Cooler Earth Sustainability Summit 2020.

“We recognise the importance of sustainable financing and this is part of our efforts in sustainable management and embedding sustainable financing into our funding strategies to improve our Environmental, Social and Governance performance,” said Datu Haji Sharbini Suhaili, group chief executive officer of Sarawak Energy.

Based on SPTs aimed at improving Sarawak Energy’s environmental and social performance from FY 2020 to FY 2023, the SLL also serves as a reminder for the renewable energy developer to keep its grid emission intensity in alignment with the Paris Agreement.

The SLL will also allow Sarawak Energy to fulfil its pledge to the Business Ambition for 1.5°Celsius, an initiative helmed by the Science Based Targets initiative in partnership with the United Nations Global Compact and the We Mean Business coalition that requires its signatories to “set science-based emissions reduction targets aligned with limiting global temperature rise to 1.5°C and reaching net-zero emissions by 2050.”

CIMB will also grant a rebate against the loan interest if pre-agreed SPTs are met.