The proceeds will be used for general working capital and refinancing purposes, and to enhance its sustainability performance

AEON Credit Service (M) Bhd has secured a total of RM600 million in sustainability-linked loans (SLLs) with three-year tenure for the first time with two Japanese banks and a local bank, namely Mizuho Bank (M) Bhd, MUFG Bank (M) Bhd and CIMB Bank Bhd.

The SLLs recognise the group’s efforts in environmental, social and governance (ESG), and the proceeds will be used for general working capital and refinancing purposes as well as to enhance its sustainability performance that contributes to the United Nations’ Sustainable Development Goals.

In a statement today, Aeon Credit said predetermined sustainability performance targets (SPTs) in accordance with the group’s existing sustainability framework are established for assessment purposes upon securing the said SLLs.

Aeon Credit will incorporate the SPTs into the assessment of business and financial performance where interest rate adjustment is subjected to the achievement of the targets.

“Securing the SLLs marks another milestone for the group to continually strengthen our commitments towards ESG while creating long-term value for our stakeholders where we operate.

“We have set our commitments to be the market leader for electric motorcycle financing, provide financial inclusion for micro-enterprises, promote ESG education in school, while continuing our efforts to work towards carbon neutral business and uphold good corporate governance practices,” Aeon Credit MD Daisuke Maeda said. — TMR