MUFG closes $50m Islamic green trade finance facility for Sime Darby Motors
Proceeds will be used for working capital needs related to EVs.
MUFG Bank (Malaysia), a subsidiary of Japan’s Mitsubishi UFJ Financial Group (MUFG), has completed its first Islamic Green Trade Finance facility for Sime Darby Motors.
The transaction is part of a US$50m Islamic facility, consisting of two US$25m tranches.
This is SDM’s first sustainable finance issuance. SDM is a Malaysia-headquartered automotive company.
The facility comprises Shariah-compliant working capital and trade products that are aligned with the “Eligible Green Projects” set out in MUFG’s green loan principles and in accordance with Bank Negara Malaysia’s guidelines.
The proceeds of this transaction will be utilised for working capital needs related to electric vehicles and parts as well as other green related requirements, MUFG Malaysia said.
MUFG established its Islamic banking arm in Malaysia in 2008, making it the first Japanese bank to offer Islamic banking products and services.