StarHub Group clinches $80.7m sustainability-linked loan

CIMB Bank will grant rebate against the loan interest if the group meets its targets.

StarHub Group has entered into an approximately $80.7m (RM270m) sustainability-linked term loan facility agreement with CIMB Bank, according to a press release.

This is the group’s first sustainability-linked loan.

CIMB will grant a rebate against the loan interest based on StarHub’s performance in its annual CDP Climate Change Scores from FY2021 to FY2023. StarHub will be eligible for interest savings each year if it is able to achieve the pre-agreed annual targets on CDP Climate Change Scores.

CDP—formerly known as the Carbon Disclosure Project—is a global benchmark on the management of climate-related impacts, to assess responders’ progress towards environmental stewardship, according to StarHub.

“As we are driving our business to support the growth and development of new services, we are pleased to underpin our commitment in our sustainability strategy by taking up our very first sustainability-linked loan with CIMB,” said Dennis Chia, Chief Financial Officer of StarHub, on the loan.