Ajinomoto (Malaysia) Berhad (AMB) on December 15 announced the acceptance and execution of a sustainability-linked Islamic financing agreement with MUFG Bank (Malaysia) for a principal sum of up to 100 million ringgit (US$24.75 million) to facilitate the construction of new plant in Negeri Sembilan, as well as to comply with environmentally-friendly industrial development.
The financing facility is offered with a five-year maturity to meet the sustainability performance targets in compliance with the Sustainability-Linked Loan Principles issued by the Loan Market Association (LMA) and the Asia-Pacific Loan Market Association (APLMA), and designed 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 affirms that AMB’s actions in environmental, social and governance (ESG) are highly evaluated by MUFG, and ESG finance is a good way to achieve the Sustainable Development Goals (SDGs).
The sustainability performance targets of this facility for AMB include a 30% reduction of GHG emission from the financial year ended March 31 2019 to March 31 2026. This is in line with the target stated in the sustainability data book disclosed by Ajinomoto Japan.
AMB has received the “Whitelist” status from the Department of Islamic Development Malaysia (JAKIM) as a recognition that it is fully committed to the Malaysia halal certification conditions and requirements. The financing will be carried out under the Islamic financial scheme that meets Shariah-compliant purposes. The company believes the ESG finance facility will enhance its sustainable growth.