MUFG Bank (Malaysia) Berhad (MUFG), a subsidiary of Mitsubishi UFJ Financial Group, Inc. has signed a MYR 500 million ($119 million) social loan with AEON Credit Service (M) Berhad (AEON Credit), a financial service provider in Malaysia.

The duo said in a statement on Monday that this landmark transaction is Malaysia’s largest social loan to date and also marks the bank’s debut transaction of its kind in the country.

It is also MUFG’s fourth sustainable finance transaction with AEON Credit in the Asia Pacific region, underscoring the longstanding relationship between both companies and a joint alignment towards promoting sustainability and delivering positive social outcomes.

The social loan is designed to support AEON Credit’s efforts in extending financing to underserved communities, including low-income groups and small businesses in new growth areas, while advancing financial inclusion in alignment with Bank Negara Malaysia’s Financial Inclusion Framework 2023-2026.

Structured in alignment with the Social Loan Principles published by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications & Trading Association, the facility ensures adherence to globally recognized standards.

AEON Credit will provide annual disclosures to lenders, detailing the allocation of proceeds and the social outcomes achieved.

“Since our establishment, AEON Credit has remained steadfast in its mission to empower underserved communities,

“Guided by our enhanced three-year sustainability roadmap, with financial inclusion at its core, we are proud to launch our inaugural Social Loan facility in partnership with MUFG
Malaysia,” said Daisuke Maeda, Managing Director of AEON Credit.

According to him, this financing initiative will provide essential working capital support to underserved customers, particularly individuals with a gross monthly income of MYR 2,500 ($594) and below, as well as those residing in underrepresented regions.

“Beyond expanding access to financial services, this initiative reflects our commitment to aligning business growth with meaningful social impact, strengthening our responsibility to society, in line with the AEON Group’s sustainability vision,” he added.

Meanwhile, Motohide Okuda, Chief Executive Officer and Country Head of Malaysia, MUFG, said this transaction marks a significant milestone in Malaysia’s sustainability financing landscape and reinforces the firm’s ongoing commitment to supporting our clients’ ambitions to create long-lasting positive impact.

“We are honored to be AEON Credit’s trusted partner once again—this being our second sustainable finance transaction in Malaysia,” he said.

He also said this continued confidence reflects the strength of the firm’s relationship and shared dedication to fostering inclusive and resilient growth in Malaysia.

“At MUFG, we are committed to empowering a brighter future and will continue to play a meaningful role in our clients’ sustainability journeys,” he added.

According to the statement, the partnership between AEON Credit and MUFG strengthens the financial sector’s role in advancing social impact in Malaysia, complementing existing green and sustainability-linked financing solutions.

It also supports national objectives outlined in the Twelfth Malaysia Plan and aligns with the United Nation’s Sustainable Development Goals (SDGs), particularly SDG 10: Reduced Inequalities.

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