CIMB Bank Berhad and CIMB Islamic Bank Berhad (CIMB) announced that it has committed RM100 million in financing through the Low Carbon Transition Facility (LCTF) to encourage and empower businesses, including small and medium enterprises (SMEs), to adopt low carbon and sustainable practices for business resilience.
This facility is being offered as part of the LCTF financing scheme established by Bank Negara Malaysia (BNM) in January 2022.
The LCTF, which is part of CIMB’s Commercial Banking offerings, enables businesses to access capital expenditure or working capital financing to facilitate the adoption of sustainable and low carbon practices.
These include among others the installation of solar power systems, the adoption of recycled or biodegradable materials, improved process efficiency to reduce waste as well as obtaining sustainability certification.
This will support their effort to transform their businesses towards low carbon and sustainable operations to increase resource efficiency and reduce environmental impact.
Through CIMB’s LCTF, businesses will benefit from collateral-free financing of up to RM10 million with an affordable repayment period of up to 10 years at a low-interest rate of up to 5 per cent per annum.
CIMB has also been actively encouraging businesses to adopt more energy-efficient and environmentally friendly practices through programmes such as GreenBizReady.
Launched in 2021, GreenBizReady aims to help SMEs in Malaysia enhance their environmental performance and economic competitiveness with practical knowledge and tools to incorporate long-term economic, environmental and social (EES) considerations into their business.