U Mobile converts banking facility of up to RM1.4b into sustainability-linked financing

PETALING JAYA: U Mobile has converted its existing banking facility of up to RM1.4 billion into a sustainability-linked financing (SLF), reflecting the telco’s commitment to its environmental and social responsibility agenda.

The conversion of the loan was facilitated by CIMB Group as sustainability structuring agent as well as joint lender and sustainability lead arranger with UOB Malaysia. 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 (SPT) which are subjected to stringent independent third party verification.

Under the SPT, U Mobile has committed to reducing 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 intensity by 7.7% by 2023 and 11.4% by 2024, respectively, against the baseline year of 2021.

“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,” said U Mobile chief financial officer Sandy Tsang.

She added that U Mobile is delighted to unveil its first Sustainability Report which showcases the kind of impact the telco is making and the priorities that it has set.

“We are striving with passion to make a sustainable future possible for the community that we operate in,” said Tsang.

CIMB Group wholesale banking co-CEO Novan Amirudin 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 focused Asean bank and Asean sustainability leader under our Forward23+ strategic plan.”

UOB Malaysia managing director and wholesale banking country head Andy Cheah said that as part of its net-zero commitments, UOB Malaysia is focused on supporting its clients’ transition by providing them with the right green solutions as they advance in 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,” he added.

U Mobile’s inaugural Sustainability Report which outlines the telco’s sustainability strategy in detail is available on www.u.com.my/sustainability.