Malaysia's CIMB targets RM30 billion in sustainable finance by 2024

KUALA LUMPUR: Malaysia's CIMB Group Holdings Bhd has committed to meet a 30-billion ringgit ($7.16 billion) target in sustainable finance offerings by 2024, the bank said on Wednesday.

The country's second largest lender by assets said the target includes wholesale and commercial financing, bonds and intermediation, wealth products and products that enable financial inclusion.

The group also plans on achieving net zero greenhouse gas emissions by 2050.

"CIMB has made good progress and is ahead of schedule in meeting its original target with over 10 billion ringgit in offerings under its (sustainability) framework already achieved as of 2021," it said in a statement.

The announcement follows its larger rival Malayan Banking Bhd, which in July said it was committed to implementing a 50 billion ringgit sustainable product framework within this year.

CIMB is also finalising an internal plan to identify and classify climate-aligned assets, economic activities and environmental, social and governance criteria, it said.

The bank has committed close to 1 billion ringgit sustainability-linked loans for corporate clients, out of 3 billion ringgit earmarked through 2024.

Earlier this year, CIMB was the lead manager for the government's dual tranche $1.3 billion sukuk offering, where the $800 million sustainability tranche was the world's first U.S.-dollar sustainability sukuk offered by a sovereign.

CIMB also launched and priced Indonesia's $3 billion global sukuk offering, including a $750 million green sukuk tranche.