Out-Law News | 29 Apr 2021 | 5:53 am | 1 min. read
Some major Singapore firms have announced sustainable green finance initiatives, timed to coincide with Earth Day last week, according to Straits Times.
The Singtel Group’s wholly owned subsidiary launched its first sustainability-linked revolving credit facility of S$750 million ($565m), which was described as the largest Singapore-dollar denominated sustainability-linked loan in Singapore. The loan is guaranteed by Singtel and will be used for general corporate purposes.
The three year loan will be provided by DBS Bank (DBS), Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank (UOB). It features interest rate discounts linked to pre-determined environmental, social and governance (ESG) targets in climate risk, carbon management, and workplace health and safety metrics.
Power utility SP Group has established a green financing framework and secured its first green loan of S$100m ($75m) from DBS, OCBC and UOB on a bilateral basis, according to its statement.
Under the framework, SP and its subsidiaries will issue green financing instruments to finance or refinance qualified projects in clean transport, energy efficiency, renewable energy and green buildings.
The agri-business company Wilmar International announced the closure of a two-year $100m sustainability-linked facility together with financial services company Credit Agricole Corporate and Investment Bank, according to a Wilmar’s statement.
Mark Tan of Pinsent Masons MPillay, the Singapore joint law venture between MPillay and Pinsent Masons, the law firm behind Out-Law, said: “The announcement by various Singapore firms of their plans to offer sustainable green finance plans is a clear indication that ESG financings and offerings are beginning to gain further traction here in Singapore. This is a step forward, particularly in light of the fact that Singapore like most of Asia, is still at a nascent stage of its ESG journey as compared to the western jurisdictions, and is likely an indication that that we will continue to see more of such green financings from Singapore going forward.”