KUALA LUMPUR (April 29): IHH Healthcare Bhd (KL:IHH) on Tuesday secured its first sustainability-linked loan worth S$300 million (approximately RM993.16 million) from Singapore-based United Overseas Bank (UOB).
IHH said that the loan is structured under UOB’s Sustainability-linked Financing Framework, which provides clients with pre-approved and externally validated key performance indicators and sustainability performance targets. This also marks UOB’s first such loan to the healthcare sector.
“We see sustainability as an opportunity to create lasting impact,” IHH group chief financial officer Dilip Kadambi said in a joint statement. “As a multinational healthcare player touching millions of lives each year, we are proud to advance sustainable financing through this loan,” he said.
With a network of more than 140 healthcare facilities across 10 countries, including over 80 hospitals, IHH has committed to capping carbon growth by 2025, and achieving net-zero emissions by 2050.
IHH, in which the Employees Provident Fund (EPF) holds a 10.84% stake, was recently included in the FTSE4Good Index, reflecting its environmental, social, and governance (ESG) principles into its organisation and operations.
UOB managing director of group corporate banking Ang Moh Chuan said the collaboration exemplified how sustainable finance could drive meaningful change, and that the bank is committed to partnering businesses to accelerate their transition towards a low-carbon economy.
“As a leading regional bank with deep Asean connectivity, we go beyond providing innovative financing solutions and act as a strategic partner to our clients, helping them achieve their sustainability ambitions and long-term business growth,” Ang said.
As at end-December 2024, UOB had provided S$16.6 billion in sustainability-linked loans to clients across the real estate, construction and infrastructure, as well as industrial sectors.
UOB was also named the Best Bank for Sustainable Finance in Singapore by the Global Finance magazine.
At noon break on Tuesday, shares of IHH were traded three sen or 0.44% lower at RM6.86, giving the group a market capitalisation of RM60.50 billion.