KUALA LUMPUR (Sept 29): AEON Credit Service (M) Bhd (KL:AEONCR) and MUFG Bank (Malaysia) Bhd — a unit of Mitsubishi UFJ Financial Group Inc — are teaming up to launch Malaysia’s largest social loan worth RM500 million, to provide financing access to low-income individuals and small businesses.

The facility marks MUFG’s first social loan in Malaysia and its fourth sustainable finance transaction with AEON Credit in the Asia-Pacific region, the two Japanese-controlled firms said in a joint-statement on Monday.

AEON Credit managing director Daisuke Maeda said the facility forms part of the consumer financial services provider’s enhanced three-year sustainability roadmap focused on financial inclusion.

“This financing initiative will provide essential working capital support to underserved customers, particularly individuals with a gross monthly income of RM2,500 and below, as well as those residing in underrepresented regions,” Maeda said.

AEON Credit is an overseas subsidiary of AEON Financial Service Co Ltd, which is part of the AEON Co Ltd in Japan.

Meanwhile, MUFG chief executive officer and country head of Malaysia, Motohide Okuda, described the facility as a milestone in Malaysia’s sustainability financing landscape.

“This continued confidence reflects the strength of our relationship and shared dedication to fostering inclusive and resilient growth in Malaysia,” Okuda said.

The partnership complements existing green and sustainability-linked financing solutions in Malaysia, and supports the United Nations’ Sustainable Development Goal 10 on reducing inequalities.

At the time of writing on Monday, shares of AEON Credit were traded five sen or 0.95% higher to RM5.34, valuing the company at RM2.72 billion.