KUALA LUMPUR: AEON Credit Service (M) Bhd has secured a total of RM600 million in sustainability-linked loans (SLLs) with a three-year tenure for the first time with two Japanese banks and a local bank, namely Mizuho Bank (Malaysia) Bhd, MUFG Bank (Malaysia) Bhd and CIMB Bank Bhd.

The company said proceeds from the SLLs will be used for general working capital and refinancing purposes and to enhance its sustainability performance that contributes to the United Nations' Sustainable Development Goals (SDGs).

AEON Credit managing director Daisuke Maeda said the SLLs marked another milestone for the company to continually strengthen its commitments towards environmental, social and governance (ESG) while creating long-term value for stakeholders.

"As guided by the corporate philosophy of pursuing peace, respecting humanity and contributing to local communities, we recognise the importance of embedding sustainability into our business model and daily operations.

"We have set our commitments to be the market leader for electric motorcycle financing, provide financial inclusion for micro-enterprises, promote ESG education in school while continuing our efforts to work towards carbon neutral business and uphold good corporate governance practices," said Maeda.

Upon securing the SLLs, the company established predetermined sustainability performance targets (SPTs) under its existing sustainability framework for assessment purposes.

AEON Credit will incorporate the SPTs into the business and financial performance assessment where interest rate adjustment is subjected to the achievement of the targets.