Mizuho, AEON Credit Sign Sustainability-Linked Loan Deal
AEON Credit Service (M) Bhd
Mizuho Bank (Malaysia) Berhad supported AEON Credit Service (M) Berhad by offering a sustainability-linked loan (SLL) for its Environmental, Social and Governance (ESG) initiatives. The loan supports the efforts of AEON Credit Service (M) Berhad in promoting sustainability and responsible business practices.
Sustainability-linked loans incentivise the borrower to meet sustainability performance targets (SPTs) by linking loan terms, such as the interest rate, to the borrower's performance against these targets.
These loans aim to promote sustainable economic activity and support economic growth in a way that is beneficial for the environment and society. The loan provided to AEON Credit Service (M) Berhad includes two sustainability performance targets: carbon emission reduction and green and social financing disbursal, and the interest rate terms are aligned with the borrower's performance in achieving these targets.
AEON Credit Service (M) Berhad is aligning its operations with the United Nations Sustainable Development Goals (SDGs) through the sustainability performance targets stipulated under the sustainability-linked loan from Mizuho Bank (Malaysia) Berhad.
AEON Credit Service (M) Berhad is living up to its ESG commitments by reducing carbon emissions and offering financing for electric motorcycles and other financial services for small businesses. The goal is to create long-term value for stakeholders and to do business responsibly and sustainably.
An external rating agency has provided a second party opinion on the validity of the sustainability performance targets and the alignment of the sustainability-linked loan with the Sustainability-Linked Loan Principles 2020 published by the Asia Pacific Loan Market Association, Loan Market Association, and Loan Syndications and Trading Association.
Mizuho Bank is actively incorporating sustainability initiatives into its business strategy. It is also using its expertise as a financial services group to help businesses working toward a low-carbon society with solutions and support, such as advice and capital financing.