- Aims to reduce GHG intensity by 11.4% by 2024
- Rebates on interest rates linked to its Sustainability targets
U Mobile has converted its existing banking facility of up to US$299.7 million (RM1.4 billion) into a sustainability-linked financing (SLF). The deal is aligned with U Mobile’s overall sustainability strategy, and it is entitled to receive rebates on its loan interest rate based on the achievement of ambitious Sustainability Performance Targets (SPTs) which are subjected to independent third-party verification. The conversion of the loan was facilitated by CIMB as Sustainability Structuring Agent as well as Joint Lender and Sustainability Lead Arranger with UOB Malaysia.
U Mobile has committed to reduce its Scope 1 and 2 carbon emissions through the implementation of energy-efficiency and solar power projects for its business and operations. The Company aims to reduce its greenhouse gas (GHG) intensity by 7.7 percent by 2023 and 11.4 percent by 2024, respectively, against the baseline year of 2021 as part of its SPTs.
“U Mobile has enjoyed phenomenal growth in recent years and as a responsible corporate we are definitely gearing ‘Towards a Sustainable U’ – our sustainability promise. Hence, this latest move is a huge milestone as it highlights the kind of commitment we are making by incorporating the environmental and social responsibility agenda into our corporate policy. We are also delighted to unveil our very first Sustainability Report which showcases the kind of impact we are making and the priorities that we have set for ourselves moving forward. We are striving with passion to make a sustainable future possible for the community that we operate in,” said Sandy Tsang, chief financial officer of U Mobile.
Novan Amirudin, co-CEO, Group Wholesale Banking of CIMB Group said, “As a financial institution that is committed to supporting our clients to promote sustainable development, we are pleased to work with U Mobile in their undertaking of the sustainability-linked financing. This SLF is a testament to our commitment towards helping our clients advance their sustainability goals, in line with CIMB Group’s ambition to become a leading ASEAN bank and ASEAN sustainability leader under our Forward23+ strategic plan.”
Andy Cheah, managing director and country head of Wholesale Banking, UOB Malaysia said, “As part of our net-zero commitments, UOB Malaysia is focused on supporting our clients’ just transition by providing them with the right green solutions as they advance on their ESG journey. By converting its existing banking facilities into SLF, U Mobile is able to meet its financial needs while achieving its sustainability ambitions. We are proud to support U Mobile’s commitment to deliver responsible growth, which is balanced with its environmental obligations.”