KUALA LUMPUR, 15th December 2020 – To facilitate the construction of new plant located at [email protected], Bandar Baru Enstek, Daerah Seremban, Negeri Sembilan, as well as to comply with environment-friendly industrial development, the Board of Directors of Ajinomoto (Malaysia) Berhad (‘AMB’) wishes to announce that the Company has on 15th December 2020 accepted and executed the Sustainability-Linked Islamic Financing Agreement for a principal sum of up to RM100 million with MUFG Bank (Malaysia) Berhad (‘MUFG’).
This finance facility is offered with five (5) years tenure to meet sustainability performance targets in compliance with the Sustainability Linked Loan Principles which are issued by the Loan Market Association and the Asia Pacific Loan Market Association and construed so as to be consistent with Shariah financing principles. The sustainability performance targets include but not limited to the reduction in Greenhouse Gas (GHG) Emission Intensity.
The Sustainability-Linked Islamic facility serves for CAPEX dynamically affirms that AMB’s actions in Environmental, Social and Governance (ESG) are highly evaluated by MUFG. This ESG Finance is a good way to achieve the Sustainable Development Goals (SDG) which is highly recommended in global and in line with the trending sentiment after the United Nations Summit in the year 2015.
Apart from that, the sustainability performance targets of this facility for AMB includes 30% reduction of GHG emission from the financial year ended 31 March 2019 to the financial year ended 31 March 2026. This is in line with the target stated in the Sustainability Data Book that disclosed by Ajinomoto Japan which the target of this facility is according to the global target.
AMB has received the “Whitelist” status from JAKIM as the recognition for fully committed with the Malaysia Halal certification conditions and requirements. Hence, the financing will be carried out under the Islamic financial scheme that meets Shariah-compliant purposes. The ESG finance facility enhances AMB’s sustainable growth for a better future prospect, which is also benefitting all stakeholders.