Sarawak Energy secures sustainable loans

by TMR

CORPORATE borrowers are upping their commitment to sustainable finance, pairing new bank loans with indicators that are in line with the environmental, social and governance (ESG) rating system.

Sarawak Energy Bhd secured its maiden sustainability-linked loan (SLL) totalling RM100 million through a revolving credit facility from CIMB Bank Bhd.

The revolving credit facility makes Sarawak Energy, the first company in East Malaysia and in the local utility sector, to secure a loan linked to measurable sustainability performance targets.

The loan reaffirms Sarawak Energy’s commitment in keeping its grid emission intensity aligned with the Paris Agreement by 2025.

Sarawak Energy chairman Datuk Amar Abdul Hamed Sepawi (picture) said the group has been incorporating sustainability measures into its businesses, operations and interactions with the community.

“Sarawak Energy plays a vital role as the state’s primary energy developer and power utility as well as a key implementer of the Sarawak government’s vision and strategic initiatives in the provision of clean, renewable, reliable and affordable energy to our communities.

“This SLL validates our efforts in sustainability which is not only good for the environment but also for businesses,” he said in a statement yesterday.

Its group CEO Datuk Sharbini Suhaili said the group recognises the importance of sustainable financing and has been embedding it into its funding strategies to improve its ESG performance.

CIMB Group Holdings Bhd group CEO Datuk Abdul Rahman Ahmad said the SLL is a testament to its commitment in incorporating environmental and social considerations into financing terms to incentivise sustainable corporate behaviour.