KUALA LUMPUR, July 20 – CIMB Islamic Bank Berhad (“CIMB Islamic” or “the Bank”) has announced its partnership with MTT Shipping Sdn. Bhd. (“MTT Shipping”) in its Sustainability-Linked Treasury Programme, marking a significant milestone as the first client to utilize the Bank’s Programme with Shariah-compliant hedging instruments. MTT Shipping, a leading local carrier in Malaysia, offers container shipping services covering routes from Peninsular Malaysia to East Malaysia, as well as regional ports in Singapore, Thailand, Brunei, Indonesia, and India.
A signing ceremony was held to commemorate the collaboration, with Dato’ Seri Kenny Ong, Group Executive Chairman of MTT Shipping, and Jefferi Hashim, Head of ESG Advisory and Solutions, Group Wholesale Banking of CIMB Group, representing their respective organizations.The Programme, launched in December 2022, has attracted clients seeking to integrate their environmental, social, and governance (ESG) aspirations into long-term treasury solutions offered by the Bank.
It covers recurring flow transactions for clients’ business activity conversion cycles, such as imports and exports, as well as episodic balance sheet hedging and risk management solutions. As part of the Programme, MTT Shipping will be eligible to receive a sustainability-linked reward based on the achievement of ambitious Sustainability Performance Targets, which will undergo stringent independent third-party verification.
Ahmad Shahriman Mohd Shariff, CEO of CIMB Islamic, expressed pride in embarking on this sustainability journey with MTT Shipping. He highlighted that this collaboration demonstrates CIMB’s commitment to prioritize product innovation and generate long-term positive impacts on the economy, community, and environment in accordance with the principles of Value-Based Intermediation (VBI). CIMB Islamic aims to meet clients’ diverse treasury requirements through bespoke solutions that contribute to the ESG space.
Dato’ Seri Kenny Ong expressed appreciation to CIMB Islamic for their support in MTT Shipping’s sustainability initiatives. He emphasized their commitment to integrating ESG considerations into their corporate roadmap and creating sustainable long-term value for stakeholders. MTT Shipping acknowledges the increasing number of ESG regulations in the maritime transport industry and strives to align its operations and decision-making processes with the policy recommendations and requirements set by relevant regulatory bodies, such as the International Maritime Organisation (IMO).
This includes managing the carbon intensity indicator (CII) ratings of their vessels and aligning emissions reduction efforts with IMO guidelines. CIMB Group, in line with its Forward23+ strategic plan, aims to become a leading focused ASEAN bank and a sustainability leader. The Group has executed significant sustainable financing transactions over the past two years, including the world’s first Malaysian Ringgit denominated sustainability-linked derivative (SLD) transaction in October 2021.
After achieving its original sustainable finance target of RM30 billion ahead of schedule, CIMB Group has doubled its target to RM60 billion by 2024. The collaboration between CIMB Islamic and MTT Shipping in the Sustainability-Linked Treasury Programme represents a significant step towards sustainable and Shariah-compliant financial solutions, reinforcing their commitment to ESG principles and contributing to the long-term development of a sustainable economy.
